Swiss National Bank Keeps Rates Unchanged - 15.12.2011

The Swiss franc reversed earlier losses against the US dollar, as well as against the euro after the Swiss National Bank added no new measures to devaluate the national currency further at its policy meeting today. At the same time the Bank reaffirmed its intention to maintain the minimum exchange rate for the EUR/CHF at 1.20 and “to buy foreign currency in unlimited quantities” if it is necessary. The target range for the policy interest rate remains at 0.0–0.25%, the Bank said. Nevertheless “the Swiss franc is still high and should continue to weaken over time” the SNB concluded as the substantial appreciation of the Swiss franc over the summer is weighing heavily on the Swiss economy, decelerating “considerably” the pace of growth in the third quarter to approximately 0.9% in annual figures, according to preliminary estimations. Pair USD/CHF dropped from 0.9547 to 0.9396, while EUR/CHF declined from 1.2397 to 1.2252.