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The SNB holds policy steady with its benchmark rate still at 0-0.25%, and the CHF 1.20 floor for...

The SNB holds policy steady with its benchmark rate still at 0-0.25%, and the CHF 1.20 floor for the euro to be enforced "with utmost determination." Pressure has come off the bank's need to defend the floor of late as the EU crisis fades (for now), and Credit Suisse (UBS rumors floating about as well) begins charging negative interest rates on deposits.
Comments (3)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    This cracks me up....you pay them to keep your money....now I am think only a criminal will think this is a great idea...only if you are trying to hide your money does this make sense...
    13 Dec 2012, 10:28 AM Reply Like
  • Rbongni
    , contributor
    Comments (33) | Send Message
     
    You haven't given this much thought. People buy Swiss Francs because of the stability/safety. If since 2000 you had your net worth in Euros instead of Swiss Francs, then you'd have lost 25% of your fortune. If you had kept it all in US Dollars instead of Francs, you'd have lost 42% of your net worth. Negative interest rates don't seem too bad in this context, now do they?

     

    Also, the inflation rate is negative in Switzerland right now. So technically, the real interest rate will most likely end up positive anyway.
    13 Dec 2012, 04:48 PM Reply Like
  • George Dorgan
    , contributor
    Comments (122) | Send Message
     
    Before the financial crisis, people hided the money in Switzerland, but it was invested in euro or in dollars. The aim was to make money on investments. Return ON money.

     

    Now most investors do not hide the money. Often the depositary bank is not even in Switzerland, but in the US or in Europe. But it is invested in francs. Return OF money. Do not risk losses.
    Since money flows to Switzerland, and Swiss assets go up, it is even Return ON money.
    13 Dec 2012, 01:58 PM Reply Like
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