Central bank keeps interest rates unchanged
The Swiss National Bank is keeping its key target range for interest rates unchanged at three to four per cent.
In a statement on fourth-quarter monetary policy, the central bank said it was still aiming for the middle of the London Interbank Offered Rate (LIBOR) range.
It repeated its June statement that inflation could edge over two per cent in 2001 before dropping back again in 2002.
Economists were divided over whether the SNB would increase interest rates given the strong growth of the economy. But the recent strength of the franc against the euro seems to have swung the balance.
The franc would probably have climbed even higher had interest rates gone up, threatening Switzerland’s export market with its biggest trading partners.
There’s also increasing evidence of a welcome slow down in the expansion of the economy which some feared may overheat. This also lessened the need for a rate rise.
However, most economists think the SNB will increase rates by 25 basis points before the end of the year.
swissinfo with agencies
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.