Investing.com – The Swiss National Bank kept its benchmark interest rate unchanged in December 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 statement added that even at the current rate, the Swiss franc is still high and should continue to weaken over time. The SNB stands ready to take further measures at any time if the economic outlook and the risk of deflation so require.
In Switzerland, the pace of growth slowed considerably in the third quarter. The substantial appreciation of the Swiss franc over the summer is weighing heavily on the Swiss economy.
For 2011 as a whole, real GDP growth of 1.5–2.0% can be expected, while the SNB is expecting economic growth in the order of 0.5% for 2012.
Following the release of the data, the Swiss franc added to gains against the U.S. dollar, with USD/CHF surging 1.13% to trade at 0.9426.
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 statement added that even at the current rate, the Swiss franc is still high and should continue to weaken over time. The SNB stands ready to take further measures at any time if the economic outlook and the risk of deflation so require.
In Switzerland, the pace of growth slowed considerably in the third quarter. The substantial appreciation of the Swiss franc over the summer is weighing heavily on the Swiss economy.
For 2011 as a whole, real GDP growth of 1.5–2.0% can be expected, while the SNB is expecting economic growth in the order of 0.5% for 2012.
Following the release of the data, the Swiss franc added to gains against the U.S. dollar, with USD/CHF surging 1.13% to trade at 0.9426.