The Swiss National Bank on Thursday decided to leave the minimum exchange rate unchanged at CHF 1.20 per euro as expected by economists. The bank reaffirmed that it will continue to enforce the ceiling with 'utmost determination'.
The central bank also retained the target range for the three-month Libor rate at 0.0-0.25 percent. If necessary, the bank will take further measures at any time, SNB added.
According to SNB, the Swiss franc is still high and is weighing on the economic activity. As such, the bank said it will not permit an appreciation of the Swiss franc, given the serious impact this would have on both prices and economic performance.
The SNB forecasts consumer prices to fall 0.6 percent in 2012. Going forward, inflation is seen at 0.2 percent next year, and 0.4 percent for 2014. "Consequently, there is no threat of inflation in Switzerland in the foreseeable future," it said.
The central bank lowered its 2012 GDP forecast citing deterioration in the global economic outlook. The SNB projects growth of around 1 percent as opposed to the 1.5 percent estimated in the June forecast.
by RTT Staff Writer
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