IMF Suggests SNB Use Negative Rates If Franc Faces More Pressure

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

“Negative interest rates on banks’ excess reserves may need to be introduced in case of renewed strong pressures on the franc,” the IMF said in a statement today following its annual Swiss Article IV consultation, repeating comments made a year ago. The franc “remains moderately overvalued,” it said.