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Swiss Central Bank Leaves Rate Unchanged; Trims Inflation Forecast

The Swiss National Bank on Thursday left its interest on sight deposits unchanged at -0.75 percent and the target range for the three-month Libor between -1.25 percent and -0.25 percent.

The decision was in line with economists' expectations.

The previous move in the sight deposit rate was a 50 basis points reduction in January 2015, when the bank also abandoned its currency exchange rate ceiling of CHF 1.20 per euro.

The SNB said it is maintaining its expansionary monetary policy and will remain active in the foreign exchange market as necessary.

Despite a modest depreciation since the September policy session, the Swiss franc is "still highly valued, and the situation on the foreign exchange market continues to be fragile," the bank said in a statement.

Citing the drop in oil prices and moderate growth prospects, the SNB trimmed its inflation forecast for next year to 0.5 percent from 0.8 percent. The outlook for 2020 was lowered to 1.2 percent from 1 percent. The bank retained its projection for this year at 0.9 percent.

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