BERLIN, March 29 (Reuters) - The Swiss National Bank (SNB) will test indexing repurchase agreement (repo) transactions to its policy rate in the coming months to increase its flexibility in steering money market interest rates, the central bank said on Tuesday.

"Once the test operations have been completed, indexed repo transactions can be used as part of the SNB's monetary policy operations," the SNB said in a statement.

It added that with indexed repo transactions, the repo rate is calculated as the simple average of the index values plus or minus any premium or discount, JASA BACKLINK GSA MINGGUAN in contrast to a repo transaction with a fixed repo rate.

(Reporting by Emma Thomasson; Editing by Zuzanna Szymanska)