SNB Keeps Rates Unchanged, Franc Climbs to New Record vs. Euro

The Swiss National Bank left its main interest rates unchanged today and predicted that the inflation will grow. The Swiss franc jumped, reaching the new all-time high versus the euro.

The SNB maintained its key Libor rate at 0.25 percent today. Philipp Hildebrand, the Chairman of the SNB Governing Board, said in his introductory remarks at the press-conference that the economic recovery persists and the impact of the strong currency on the nation’s exporters is offset by the strong international demand. Yet pressure on the exporters is growing and downside risks prevail. Despite some negativity the Bank maintained its forecasts for GDP growth at 2 percent and the inflation growth at 0.9 percent in 2011.
USD/CHF slipped to 0.8489 from 0.8528 as of 12:14 GMT today after it earlier reached the intraday high of 0.8548. EUR/CHF sank to 1.1959 from 1.2090 after posting the record low of 1.1956.
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