SNB introduces possibility of repo rate transactions being indexed to policy rate

  • The Swiss central bank says it is to enhance flexibility in steering money market interest rates

This will be added to the SNB's monetary policy repertoire moving forward but not before some test operations are conducted. For the time being, the central bank implements monetary policy by setting the SNB policy rate so this just adds to the tools they can play around with. However, I still see the key policy rate as being the main weapon in the armory.

The full announcement can be found here.

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