This will kick into effect on 1 December 2023, with the SNB lowering the threshold factor for the remuneration of sight deposits of those account holders subject to the minimum reserve requirements from 28 to 25. For some context, the threshold factor is applied to this calculation here:
And for added context, the remuneration is for Swiss sight deposits up to said threshold, which will see the SNB policy rate be applied. Sight deposits below said threshold will be remunerated at the SNB policy rate minus a discount of 0.50%.
Besides that, the SNB also says that sight deposits which are held to meet minimum reserve requirements will no longer be remunerated. Hence, that means the entire minimum reserve requirement will now no longer be remunerated - whether held in cash or sight deposits.
Well, this in part another way for the SNB to tweak and maintain the Swiss Average Rate Overnight (SARON) to the desired level i.e. current policy rate level at 1.75%. As they are now in pause mode, this is the next step after having gone around working on the matter via other means as noted here back in October last year.
