FXstreet.com (Barcelona) - The Swiss National bank Monetary Policy Committee has decided to leave its key interest rate on hold at 2.75% after their monthly meeting.
The Bank affirms that global economical growth will be slower than expected, nevertheless, Swiss economy is still running at good pace, according to the SNB. Despite the global slowdown and the financial markets' turmoil, domestic demand is leading a robust growth in employment, and the Bank expects de national GDP to grow around 2.5% during 2007, although the expectations for 2008 reduce GDP growth to 2.0%.
The expected downturn global economy will cause, according to the SNB, a improved inflation outlook for 2009 and 2010, although rising petrol prices will push inflation up during the first half of 2008. The Bank, with the current interest rates, expects national inflation to grow around 0.7% in 2007, 1.7% in 2008 and 1.5% in 2009.