Swiss sight deposits reached their highest point since more than one year which led to speculation about Swiss National Bank intervention to reduce the franc’s value. The data from Monday revealed that deposits increased by 11.2 billion francs to reach 475.3 billion. Economists continue to disagree about the interpretation of these deposit increases. GianLuigi Mandruzzato from EFG Bank believed the move could be an intervention while UBS’s Maxime Botteron proposed it might be related to SNB bill or repo maturation. The SNB declined to comment. The central bank faces rising pressure from the strong franc while maintaining zero interest rates which leads analysts to predict that interventions will become its primary tool for maintaining competitiveness and liquidity management.
