SNB has lowered the threshold factor for the remuneration of sight deposits of account holders subject to minimum reserve requirements from 16.5 to 15, as of 1st March.

• "The lowering of the threshold factor counteracts the increase in thresholds due to the raising of the minimum reserve requirement as of 1 July 2024,2 thereby ensuring that the implementation of monetary policy remains effective and supporting an active money market. The adjustment of the factor has no impact on the current monetary policy stance."

The Swiss National Bank's decision to lower the threshold factor for the remuneration of sight deposits aims to mitigate the impacts of raising minimum reserve requirements planned for next year. While this adjustment supports effective monetary policy, it signals a commitment to maintaining liquidity in the banking system without altering the current policy stance. Traders should watch for how this influences Swiss franc stability and fixed-income reactions amidst broader market dynamics.