Swiss Na­tional Bank steps up liq­uid­ity pro­vi­sion

Arab News - - Business News -

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

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