SNB Resists Temptation To Lower Interest Rates

SNB Resists Temptation To Lower Interest Rates by Matthew Allen, swissinfo.ch

The Swiss National Bank (SNB) has decided against moving interest rates into even deeper negative territory. The central bank opted on Thursday to keep the benchmark rate at -0.75% for both ordinary savers and banks depositing their money at the SNB.

The announcement follows hard on the heels of a European Central Bank (ECB) decision to make commercial banks pay more to stash their money in the ECB’s coffers. However, the ECB crucially declined to speed up the pace of its quantitative easing programme on December 3, which would have placed the franc under more pressure.

“Despite depreciating somewhat in recent months, the Swiss franc is still significantly overvalued,”...