To control the rates of short-term interest rates, the Swiss National Bank decided to set and maintain a range of 1.00 for the three-month LIBOR rate for CHF. LIBOR — London Interbank Offered Rate — is the interest rate at which large banks are placing loans in the financial market in London. LIBOR rates are set for different periods and different securities. LIBOR is fixed daily 11 am London time and is calculated as the average of the last ten quotes of sellers.
High interest rates reduce the growth of consumer lending and stimulate the growth of savings, which leads to slower economic growth. The growth of rates usually leads to an increase in capital inflows and the growth of the national currency in the medium term, however, if growth rates are not based on high rates of economic growth, it could lead to economic stagnation and negative impact on the currency markets in the long term.
- Release Frequency: quarterly.
- Release Schedule: third Thursday of the month (March, June, September, December).
- Source: Swiss National Bank.