Investing.com – The Swiss National Bank kept its benchmark interest rate unchanged in September and reiterated its commitment to defend the minimum franc rate “with utmost determination”, it announced on Thursday.
In a statement, the SNB said it was keeping its benchmark interest rate unchanged at 0.0%, broadly in line with expectations.
The accompanying rate statement released after the announcement said that the SNB was “prepared to buy foreign currency in unlimited quantities” to enforce the minimum exchange rate of CHF1.20 per euro set on September 6.
The statement added that even at a rate of CHF 1.20, the Swiss franc is still high and should continue to weaken over time. If the economic outlook and deflation risks so require, the SNB will take further measures.
In Switzerland, economic activity is suffering from both the strong Swiss franc and the softening in international demand, while the growth of the global economy has slowed substantially in the course of the second quarter.
For 2011 as a whole, GDP growth can be expected at 1.5–2.0%, while inflation forecasts show a rate of 0.4%.
Following the release of the data, the Swiss franc held losses against the U.S. dollar, with USD/CHF gaining 0.12% to trade at 0.8771.
In a statement, the SNB said it was keeping its benchmark interest rate unchanged at 0.0%, broadly in line with expectations.
The accompanying rate statement released after the announcement said that the SNB was “prepared to buy foreign currency in unlimited quantities” to enforce the minimum exchange rate of CHF1.20 per euro set on September 6.
The statement added that even at a rate of CHF 1.20, the Swiss franc is still high and should continue to weaken over time. If the economic outlook and deflation risks so require, the SNB will take further measures.
In Switzerland, economic activity is suffering from both the strong Swiss franc and the softening in international demand, while the growth of the global economy has slowed substantially in the course of the second quarter.
For 2011 as a whole, GDP growth can be expected at 1.5–2.0%, while inflation forecasts show a rate of 0.4%.
Following the release of the data, the Swiss franc held losses against the U.S. dollar, with USD/CHF gaining 0.12% to trade at 0.8771.