| Band within which the Swiss National Bank aims to keep its reference interest rate, the three-month Libor rate for Swiss franc investments. The target range set by the National Bank is a way of communicating its monetary policy intentions to the market. An increase signals a tightening while a reduction signals an easing of monetary policy. With its repos, the National Bank supplies the banks with more or less funds and thus seeks to ensure that the Libor rate remains within the fixed range.
Funds which are invested at a bank for a fixed period of time. Also known as (fixed-) term deposits. Normally the investor cannot access these funds until the end of an agreed period.
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