On 18 December 2014, the SNB decided to impose an interest rate of -0.25% on sight deposit account balances. From 6 September 2011 to 15 January 2015, the main focus of implementation was on the minimum exchange rate of CHF 1.20 per euro, which the SNB enforced during this period. The reason for this adjustment was that the Libor was becoming less relevant as the most important reference rate owing to the absence of the underlying money market transactions. As of 13 June 2019, the SNB policy rate replaced the target range for the three-month Swiss franc Libor (London Interbank Offered Rate) previously used in the SNB's monetary policy strategy. SARON is the most representative of these rates today. The SNB seeks to keep the secured short-term Swiss franc money market rates close to the SNB policy rate.
The official interest rate is the SNB policy rate. In Switzerland, interest rate decisions are taken by the Swiss National Bank.
