The Swiss National Bank (SNB) is making various adjustments to the interest rate on so-called sight deposits. This does not change the monetary policy orientation, the SNB emphasized in a statement on Monday.

Specifically, the SNB is reducing the factor for the limits that is used for the graduated interest rate on sight deposits. This will be reduced from 28 to 25 at the beginning of December.

The SNB key interest rate applies to sight deposits up to this limit, it said. Demand deposits above the limit bear interest at the SNB key interest rate less an interest discount of 0.5 percentage points. According to the SNB, the basis for calculating the limits remains unchanged.

In addition, sight deposits that are held to meet minimum reserves will no longer earn interest, the communiqué continues. …