FXstreet.com (Barcelona) - The Swiss National Bank's monetary policy committee has decided to leave its key interest rate unchanged at 2.75%, and the target range for the three-month Libor unchanged at 2.25-3.25%.
The Bank assesses that Swiss economy will slow down its growing pace over the next months, influenced by the international environment, Swiss GDP, according to the Bank will grow at a pace around 1.5% - 2%.
Inflation, affected by the rising oil prices will increase at a faster pace than initially thought, the Bank estimates a year-on-year CPI growth average to amount to 1.4% in 2009 and 2010.
The Bank affirms that Swiss economy continues to be buoyant, and that pushes up inflationary pressures, but in the other hand, the slow down in global economy will have an impact in Swiss economy, which will contribute to equilibrate inflationary pressures. In this context, the Bank has decided to leave interest rates unchanged while keeping a close watch on developments in the financial markets, the international economy, oil prices and the Swiss franc exchange rate.