Management of the Central Bank of Switzerland officially announced the refusal to cap the Swiss franc against the euro. In autumn 2011, the bank set the ceiling for the national currency at 1.2 against the euro which was about 0.83 euro per franc. This measure was adopted to stop deflation and recession. In addition, policymakers set the negative deposit rate in December 2014 hoping to reduce a little the number of investors wishing to wait out the currency storm in the "safe haven". Demand deposits rate of commercial banks is 0.25 percentage point. The new solution was the take-off runway for the Swiss franc which rose by 25% against the euro. The USD/EUR pair also was affected by these changes. The euro hit a new low and traded at 1,158 against the U.S. dollar, but soon it rebounded to 1,172. Moreover, the Swiss National Bank lowered the interest rate to the negative level of -0.75%. Analysts also draw attention to the fact that just a month ago the central bank confirmed the ceiling rate of the national currency to the euro at the level of 1.2. Herewith, the regulator emphasized the "highest possible commitment" to defend this level by all means and was ready to opt for additional measures if needed. However, politicians’ opinion has changed this year. Perhaps, it was a "cunning plan" of the Swiss bankers.
