SNB Leaves Libor Target Range at 0.0 to 0.25%, Holds Minimum EURCHF Rate Unchanged at 1.20 - 13.9.2012

The Swiss National Bank decided today at its Monetary Policy assessment to leave unchanged the target range for the three month Libor rate at 0.0-0.25%. Inflation expectations of SNB lowered compared to June assessment and for 2012 a -0.6% inflation rate is expected, 0.2% for 2013 and 0.4% for 2014. Furthermore the SNB reported that in the second quarter of 2012 the global economic growth weakened, setting pressure on Swiss economy as well, Swiss GDP slightly fell and Unemployment increased. SNB also said that is leaving the minimum exchange rate of EURCHF at 1.20 stating that “will continue to enforce it with the utmost determination” and therefore will not allow the Swiss franc to become stronger against the Euro by buying unlimited quantities of foreign exchange. The Euro versus the Swiss franc moved sharply up from 1.2080 to 1.2107 after the release of the SNB.