- Domestic sight deposits CHF 436.4 bn vs CHF 448.0 bn prior
It's an interesting drop in sight deposits, with the headline number being the lowest since 2015. The swing could also be impacted by thinner liquidity conditions but also perhaps after the tiered remuneration changes by the SNB this month. After the 50 bps rate cut here, lenders who now park more cash at the SNB than what the threshold allows for will see that exceeding amount earn 0% interest. So, there's that. But the sight deposit levels are also a form of gauge of forex intervention by the SNB but the drop here sort of runs against the argument that they are viewing the franc as being too strong again. For some context, a material trending rise in sight deposits can often be interpreted as the SNB intervening to weaken the franc. And that is not what we're seeing here.
