News Column

Swiss National Bank Keeps Policy Unchanged

June 19, 2014

BRUSSELS (Alliance News) - The Swiss National Bank on Thursday reaffirmed its currency exchange rate and maintained its interest rate close to zero as widely expected by economists.

The SNB maintained its minimum exchange rate of CHF 1.20 per euro. The central bank also left its target range for the three-month Libor unchanged at 0.0-0.25%.

The SNB reiterated that it will continue to enforce the minimum exchange rate with the utmost determination. Further, the bank repeated that it is prepared to purchase foreign currency in unlimited quantities for this purpose, and to take further measures as required if necessary.

The path of the SNB's conditional inflation forecast of June points to lower inflationary pressure in the medium term. The bank sees no signs of inflation risks in Switzerland in the foreseeable future.

At 0.1%, the inflation forecast for the current year was raised by 0.1 %age points from zero.

It estimates 0.3% inflation for 2015, instead of 0.4% projected in March. For 2016, inflation is seen at 0.9%.

The SNB expects the moderate recovery to continue in the coming quarters. For 2014, it again expects a growth rate of around 2%.

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Source: Alliance News

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