Investing.com - The Swiss National Bank kept its benchmark interest rate unchanged 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 "deflation risks have increased once again and the Swiss franc is still high."
The SNB “will continue to enforce the minimum exchange rate with the utmost determination. It is prepared to buy foreign currency in unlimited quantities for this purpose."
The SNB has once again adjusted its conditional inflation forecast downwards compared to the previous quarter. Above all, the appreciably lower oil price will push inflation into negative territory during the next four quarters.
SNB Chairman Thomas Jordan was to comment on the decision at a press conference later in the day.
EUR/CHF was trading at 1.2017 from around 1.2035 ahead of the decision, while USD/CHF was at 0.9642 from 0.9659 earlier.