Swiss National Bank steps up liquidity provision

The Swiss National Bank will step up its liquidity providing operations and cut the interest rate on overnight funding for banks, it said on Monday.

The central bank will conduct additional open market operations — in the form of repo auctions — “as required,” and will also reduce its special rate for liquidity shortage financing. The SNB is reducing the lower limit on its overnight funding to a minimum of 0 percent, from a current lower limit of 0.5 percent.

“As before, the special rate will be calculated as the SNB policy rate plus a surcharge of 50 basis points,” the central bank said.

“However, the lower limit for the special rate is to be reduced to at least 0 percent, down from the current level of at least 0.5 percent,” it said.

Reuters