SNB Should Use Negative Rates If Franc Rises, IMF says

The Swiss National Bank should charge banks on excess reserves if the franc rises against the euro, the International Monetary Fund said today.

“In case of renewed appreciation pressures, the IMF believes that the SNB should introduce negative interest rates on excess bank reserves at the SNB,” IMF Mission Chief Enrica Detragiache said at a news conference in Bern today. SNB Alternate Governing Board Member Thomas Moser said this is an option.