The SNB reduced the group of sight deposit account holders that are exempt from negative interest rates in an attempt to increase to effectiveness of the negative interest rate policy as a meaningful disincentive to hold Swiss deposits.The CHF depreciated around 1% vis-à-vis the EUR and the USD but EURCHF is still trading at levels below the SNB’s comfort zone, in our view.“We expect today’s announcement to add downward pressure on overnight rates and to keep the CHF under pressure, at least in the near term. We re-iterate our view that further measures in the form of FX interventions and further interest rate cuts may be used under a scenario of a sustained CHF rally.” said Barclays
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