ZURICH (Reuters) – The Swiss National Bank is going to use SNB bills and repo transactions to absorb liquidity in order to ensure short-term money market rates remain close to the now positive policy rate, governing board member Andrea Maechler said on Thursday.
“We are adjusting our implementation approach,” said Maechler in comments prepared for a speech she was due to give after the SNB announced a rate hike, adding the new approach consisted in absorbing liquidity via open market operations and a tiered remuneration of sight deposits banks hold at the SNB.
(Reporting by Silke Koltrowitz; Editing by Michael Shields)