The Swiss National Bank (BNS) announced today that it will keep interest rates at -0.75% in the context of an uncertain economic situation due to the coronavirus crisis, and considered the possibility of injecting liquidity with the sale of thousands of millions of Swiss francs to avoid an appreciation of the currency.
In a framework of “extraordinary challenges for Swiss society and economy”, the BNS assured that it will continue its expansionary monetary policy, increase the amount exempt from the negative interest rate for banks and examine the possibility of additional measures.
The issuing entity indicated that the outlook for the Swiss economy “has darkened considerably”, the Swiss franc has appreciated, and in this context it has been decided to keep the negative interest rate applied to demand deposits unchanged (-0 , 75).
At the same time, “there will be increasing intervention in the foreign exchange market to help stabilize the situation, taking into account the situation for all currencies,” the BNS said in its statement.
The Swiss financial system “has sufficient liquidity”, but if necessary “additional measures will be taken to ensure the supply of cash,” he said.
The national bank added that it will work “in close collaboration” with the Federal Council (Swiss Executive) to try to improve the economic situation of the country, one of the ten countries in the world with the highest number of cases of COVID-19.