Swiss Depositors Confused By Concept Of NIRP As Swiss Deposits Jump Most In 18 Months

This wasn't supposed to happen. The Swiss National Bank has a problem - having announced on Dec 18th that it will impose negative deposit rates starting Jan 22nd, sight deposits soared (as opposed to the textbook expectations). Sight deposits (cash-like deposits commercial banks hold with the central bank) rose CHF10.8 billion this week (or 3.4%) - the most in over 18 months.

 

 

Looks like we are going to need moar negative-er rates...

 

Chart: Bloomberg