Investing.com - The Swiss National Bank kept its benchmark interest rate unchanged in March and reaffirmed its commitment to the minimum exchange rate of CHF1.20 per euro, it announced on Thursday.
In a statement, the SNB said it was keeping its benchmark interest rate unchanged at 0.0%, in line with expectations.
The accompanying rate statement released after the announcement said that the SNB “will continue to enforce the minimum exchange rate of CHF 1.20 per euro with the utmost determination”.
The central bank is prepared to buy foreign currency in unlimited quantities for this purpose and will continue to maintain liquidity on the money market at an exceptionally high level.
The statement added that even at the current rate, the Swiss franc is still high.
In the foreseeable future, there is no risk of inflation in Switzerland. If developments in the international economy are worse than foreseen, or if the Swiss franc does not weaken further, as expected, downside risks for price stability could re-emerge.
The SNB stands ready to take further measures at any time if the economic outlook and the risk of deflation so require.
In Switzerland, growth has slowed significantly over the course of the past year. Added value declined in the fourth quarter in industries affected by exchange rate movements.
For 2012, the SNB is now forecasting moderate growth, at close to 1%.
Following the release of the data, the Swiss franc held on to gains against the U.S. dollar, with USD/CHF shedding 0.26% to trade at 0.9282.
In a statement, the SNB said it was keeping its benchmark interest rate unchanged at 0.0%, in line with expectations.
The accompanying rate statement released after the announcement said that the SNB “will continue to enforce the minimum exchange rate of CHF 1.20 per euro with the utmost determination”.
The central bank is prepared to buy foreign currency in unlimited quantities for this purpose and will continue to maintain liquidity on the money market at an exceptionally high level.
The statement added that even at the current rate, the Swiss franc is still high.
In the foreseeable future, there is no risk of inflation in Switzerland. If developments in the international economy are worse than foreseen, or if the Swiss franc does not weaken further, as expected, downside risks for price stability could re-emerge.
The SNB stands ready to take further measures at any time if the economic outlook and the risk of deflation so require.
In Switzerland, growth has slowed significantly over the course of the past year. Added value declined in the fourth quarter in industries affected by exchange rate movements.
For 2012, the SNB is now forecasting moderate growth, at close to 1%.
Following the release of the data, the Swiss franc held on to gains against the U.S. dollar, with USD/CHF shedding 0.26% to trade at 0.9282.