SNB Sees `No Reason' to Change Lowest Deposit Rate in the World

The video discusses the current state of negative interest rates at -75 basis points and the rationale for maintaining this policy despite criticism. It explains the low inflation forecast and modest growth rates, which justify the current monetary conditions. The potential negative impacts of raising interest rates, such as currency appreciation and reduced growth, are highlighted. Additionally, adjustments in the banking system to lower costs and manage short-term interest rates are covered.

What is the current state of deposit rates according to the transcript?

• Zero basis points

• Positive 50 basis points

• Positive 75 basis points

• Negative 75 basis points

Why did the policymakers decide not to change the monetary policy?

• Weak Swiss franc

• Adequate current monetary conditions

• Strong economic growth

• High inflation forecasts

What would be a likely outcome of raising interest rates in Switzerland?

• Depreciation of the Swiss franc

• Boosted economic growth

• Appreciation of the Swiss franc

• Increased inflation

What change was made to the banking system to help banks?

• Increased interest rates

• Reduced minimum reserves

• Introduced 25 times minimum reserves

• Eliminated all reserves

How effective is the new banking system according to the transcript?

• Somewhat effective

• Not effective at all

• Ineffective

• Very effective