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17 Sep 2015
SNB leaves key rates unchanged as expected
FXStreet (Mumbai) - The Swiss National Bank (SNB) on Thursday left key policy rates unchanged as expected. The three-month Libor unchanged at between −1.25% and –0.25%. The interest rate on sight deposits with the SNB remains at –0.75%.
As per official statement, “the Swiss franc is still significantly overvalued, despite a slight depreciation. The negative interest rates in Switzerland and the SNB’s willingness to intervene as required in the foreign exchange market make investments in Swiss francs less attractive; both of these factors serve to ease the pressure on the franc.”
Inflation forecast revised lower
For the current year, the inflation forecast decreases by 0.2 percentage points to −1.2%; for 2016, it drops from −0.4% to −0.5%. For the current year, the SNB still expects real GDP growth of close to 1%.
As per official statement, “the Swiss franc is still significantly overvalued, despite a slight depreciation. The negative interest rates in Switzerland and the SNB’s willingness to intervene as required in the foreign exchange market make investments in Swiss francs less attractive; both of these factors serve to ease the pressure on the franc.”
Inflation forecast revised lower
For the current year, the inflation forecast decreases by 0.2 percentage points to −1.2%; for 2016, it drops from −0.4% to −0.5%. For the current year, the SNB still expects real GDP growth of close to 1%.