The Swiss National Bank on Thursday decided to retain the exchange rate cap and the near-zero interest rate. The bank also noted that it "will not tolerate" further gains in the currency and is prepared to take necessary measures at any time.
The central bank said it will continue to enforce the minimum exchange rate of CHF 1.20 per euro "with the utmost determination." The bank said it is prepared to buy foreign currency in unlimited quantities for this purpose.
The target range for the benchmark three-month Libor was kept unchanged at 0.00-0.25 percent.
"Even at the current rate, the Swiss franc is still high," SNB said. "Another appreciation would have a serious impact on both prices and the economy in Switzerland. The SNB will not tolerate this. If necessary, it stands ready to take further measures at any time."
by RTT Staff Writer
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