RTTNews - Thursday, the Swiss National Bank left its three-month libor target range unchanged at 0-0.75% as expected. In other words, the bank kept its key interest rate unchanged at 0.25%.
The central bank said in a statement that it will continue to provide the economy with a generous supply of liquidity and to purchase Swiss franc bonds with the aim of reducing risk premia on long-term bonds issued by private sector borrowers. The SNB also said it will take firm action to prevent an appreciation of the Swiss franc against the euro.
The Swiss central bank also maintained its GDP growth forecast for this year. It expects real GDP to fall by between 2.5% and 3% in 2009.
The bank also kept its inflation forecast for 2009 untouched at negative 0.5%. The SNB expects this trend to reverse from the beginning of the next year. Inflation will become slightly positive, amounting to 0.4% in 2010 and 0.3% in 2011, the central bank said.
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