| The interest rate at which the National Bank concludes repos with the banks.
The repo (repurchase agreement) is the most important monetary policy instrument currently used by the National Bank for influencing
short-term money-market interest rates and the money supply. The National Bank buys securities from a financial market participant (usually a bank) and credits the bank with their countervalue on its sight deposit account. At the same time it is agreed that the bank will repurchase the securities at a later date. For the duration of the operation, the bank receives from the National Bank a short-term Swiss franc loan, for which it pays the repo rate. The National Bank receives securities by way of collateral. From an economic point of view, a repo is a secured loan. For the duration of the repo operation, the quantity of Swiss francs held by the banks increases (liquidity). At the end of the operation it falls again unless the National Bank rolls over the repo. By selling securities against Swiss francs the National Bank can also reduce the supply of Swiss francs or liquidity.
Information about the economy in the different Swiss regions
is an important input for the Swiss National Bank
when making monetary policy
decisions. This information is collected by the delegates for
regional economic relations, who are in regular contact with
companies and business managers. The National Bank has
representatives in Basel, Geneva, Lausanne, Lugano and St
Gallen.
See minimum reserves.
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