Friday, December 11, 2009

Swiss National Bank kept Libor rate at 0.25%

At the meeting Thursday, December 10 Swiss National Bank decided to maintain the current monetary policy and rate of Libor at 0.25%. The main reason for this decision was the uncertainty about further developments. The Swiss economy recovers, but "still fragile".
The meeting also decided that the Swiss National Bank will continue to provide significant amount of liquidity the economy, but stop buying Swiss bonds issued by private borrowers.
Swiss National Bank suggests that, despite the growth in the third quarter, GDP will contract in 2009 to 1,5%. In 2010, annual GDP growth should be between 0.5% to 1%.
Inflation is expected to be -0.5% in 2009. In 2010, the inflation rate to increase to 0,5% in 2011 - up 0.9%. Despite the positive forecasts, the risk of deflation remains.

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