Swiss national bank introduces negative interest rates

Zurich: The Swiss National Bank on Thursday said it would introduce a negative exchange rate of -0.25 percent on sight deposit account balances at the central bank as it seeks to deter safe-haven buying.

In recent weeks, the franc has edged closer to its 1.20 per euro ceiling as the euro weakens on expectations the European Central Bank will launch full-blown quantitative easing early next year.

The SNB said it would expand the target range for three-month Libor to -0.75 percent to 0.25 percent. It plans to levy a negative interest rate on balances above 10 million Swiss francs.