The Swiss National Bank unexpectedly gave up its minimum exchange rate of 1.20 franc per euro today, ending a three-year-old policy designed to shield the economy from the euro area’s sovereign debt crisis. In a surprise move, the central bank lowered the interest rate on sight deposit account balances that exceed a given exemption threshold to minus 0.75 percent from minus 0.25 percent, it said in a statement today. “While the Swiss franc is still high, the overvaluation has decreased as a whole since the introduction of the minimum exchange rate,” the institution said. “The economy was able to take advantage of this phase to adjust to the new situation.”
Posted on: Thu, 15 Jan 2015 10:36:24 +0000