SNB Sticks With Record-Low Rates and Intervention Threat
- Deposit rate stays at -0.75%, SNB restates intervention pledge
- Brexit, French election could trigger flight into franc
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The Swiss National Bank kept its deposit rate at an historic low and reaffirmed its threat to intervene to keep a lid on the franc.
Keen to prevent the currency from appreciating, SNB President Thomas Jordan and his colleagues held the interest rate on sight deposits at minus 0.75 percent on Thursday, as forecast in a Bloomberg survey. They also repeated their pledge to wage foreign-exchange interventions if needed, saying the franc remained “significantly overvalued”.