The Swiss National Bank on Thursday decided to maintain its three-month Libor rate close to zero as expected and said it will continue to enforce the minimum exchange rate of CHF 1.20 per euro.
The target range for the three-month Libor will remain unchanged at 0.00-0.25 percent. The bank said it is prepared to buy foreign currency in unlimited quantities and maintain liquidity on the money market at an exceptionally high level.
The central bank noted that even at the current rate, the Swiss franc is still high. The bank revised its consumer price inflation forecast further downwards and now expects the CPI to fall 0.6 percent, faster than 0.3 percent decline seen earlier.
For 2012, the SNB is now forecasting moderate growth close to 1 percent, stronger than previously estimated 0.5 percent growth.
SNB reiterated that it is ready to take further measures at any time if the economic outlook and the risk of deflation so require.
No comments:
Post a Comment