news conference 22 september 2022, 10. 00 am introductory remarks by andrea m. maechler as thomas jordan has indicated, i will now discuss some important aspects of the implementation of our monetary policy in the money market. with today ’ s interest rate decision, we are bringing a period of a negative snb policy rate to an end. to ensure that the secured short - term swiss franc money market rates remain close to the snb policy rate in a positive interest rate environment, we are adjusting our implementation approach. our approach now consists of the following two elements. the first is a tiered remuneration of the sight deposits that banks and other financial market participants hold at the snb. we remunerate sight deposits up to an individual threshold at the snb policy rate. sight deposits above this threshold are remunerated at an interest rate of zero percent. the individual thresholds are based on the calculation of exemption thresholds in a negative interest rate environment used to date. 1 the tiered remuneration of sight deposits creates an incentive for account holders to carry out money market transactions with each other even in a situation of liquidity surplus. these transactions contribute to a robust basis for the calculation of saron. the second element is the absorption of liquidity by way of open market operations. with these operations, we reduce the sight deposits and thereby the liquidity supply in the money market. in this way, we ensure that saron and the other secured short - term money market rates remain close to the now positive snb policy rate. to absorb liquidity by way of open market operations, we will use two proven monetary policy instruments : snb bills and repo transactions. participants in the swiss franc money market are familiar with both instruments. we have used repo transactions regularly in previous years. snb bills are debt certificates issued by the snb, typically with a term of up further information is available in the ‘ instruction sheet governing interest on sight deposits ’. page 1 / 2 zurich, 22 september 2022 andrea m. maechler news conference to one year. we last used snb bills for the implementation of monetary policy in 2011 and have since conducted tests to ensure operational readiness. we expect the volume of snb bills issued to increase within a short period of time on the back of the weekly auctions. the new interest rates on sight deposits apply as of tomorrow. the open market operations to absorb liquidity are being conducted with immediate effect. to

philipp hildebrand : snb ’ s performance against the background of financial market developments introductory remarks by dr philipp hildebrand, member of the governing board of the swiss national bank, at the end - of - year media news conference, zurich, 15 december 2005. * * * developments in the financial markets the international financial markets have been dominated in recent months by four key developments. long - term capital market yields have improved ; the equity markets have, on the whole, exhibited very positive developments ; the us dollar has continued the uptrend which set in at the beginning of this year ; and the gold price has climbed sharply. the movements of the past few months in the international capital markets are largely attributable to economic developments and us monetary policy. long - term dollar interest rates climbed significantly in the second half of the year thanks to the robust economic climate, the positive outlook in the us and the continued normalisation of monetary policy by the federal reserve. a rise in yields was also observed outside the us. the spread between us and european capital market rates, however, remained considerable. this is not least reflected in the differing business cycle phases of the us and european economies. despite the improved economic outlook and higher oil prices, inflation expectations have, on the whole, remained moderate on both sides of the atlantic. the three major economic areas – us, japan and europe – exhibited divergent equity market developments. while the us equity market largely maintained its sideways trend, the european indices firmed substantially. having recovered from its low in early 2003, japan ’ s equity market also made a marked recovery. the increase in optimism with regard to the economy and the highly favourable earnings situation of companies were major contributing factors to the rise in equity prices in europe and japan. the swiss equity market – as measured by the spi – is now trading once again at its peak level of september 2000. looking at the developments since 1995, it becomes apparent that the swiss equity market has strengthened far more significantly than equivalent foreign markets ( cf. graph 1 ). in the forex market, the dollar ’ s recovery continued, with the greenback benefiting from the cyclical interest rate lead in the us, which has made dollar investments in all maturities rather more attractive. a number of market analysts believe that the homeland investment act, which offers tax breaks to us corporations if they repatriate their foreign earnings held abroad before the end of this fiscal year, has boosted the dollar. despite the fact that