Swiss National Bank adjusts remuneration of sight deposits

Zurich, Jan 26 (Reuters) – The Swiss National Bank said it has adjusted the remuneration rate on sight deposits held by commercial banks at the central bank.

Sight deposits are overnight balances that banks keep at the SNB and are remunerated at a rate set by the central bank as part of its monetary‑policy toolkit.

The adjustment reflects the SNB’s ongoing assessment of monetary conditions and its mandate to ensure price stability in Switzerland.

By altering the remuneration, the SNB can influence banks’ incentives to hold excess reserves, thereby affecting short‑term funding costs and liquidity in the Swiss financial system.

The change is expected to feed through to market rates, although the exact impact will depend on banks’ responses and broader economic developments.

The SNB did not disclose the new rate level, but the move aligns with recent policy actions aimed at calibrating the stance of monetary policy amid evolving inflation and growth outlooks.

Analysts will watch how the adjustment interacts with other policy levers, such as the policy rate and foreign‑exchange interventions, to gauge its effect on the Swiss franc and domestic credit conditions.