Swiss National Bank Holds Rate at 0.25%

The Swiss National Bank held its target for the 3-month franc LIBOR unchanged at 0.25 percent. The SNB expects inflation to remain relatively subdued: "Assuming an unchanged three-month Libor of 0.25% during the forecast horizon, average inflation is expected to amount to 0.8% for 2011, to 1.1% for 2012 and to 2.0% for 2013." The Bank also pointed to eventual tightening, noting: "The conditional inflation forecast shows that there is no threat to price stability in the short term. However, the rising path in 2012 and 2013 shows that the current expansionary monetary policy cannot be maintained over the entire forecast horizon without compromising price stability in the longer term."

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