Interest rates kept on hold

Switzerland's central bank has decided not to change interest rates for the next three months despite the financial storm rocking global economies.

This content was published on September 18, 2008 - 16:06

The Swiss National Bank (SNB) announced as expected on Thursday that the rate would remain at 2.75 per cent.

The bank said the financial-market situation remains worrisome, but the risk of inflation and high oil prices calls for a "prudent attitude". It promised to "remain vigilant".

Analysts calculate Swiss economic growth at 1.5 to 2 per cent in the coming year.

The SNB currently predicts an inflation rate of 2.7 per cent for 2008. For 2009 it has raised its forecast for inflation from 1.7 per cent to 1.9 per cent, but believes the rate should drop to 1.3 per cent in 2010.

Earlier in the week central banks in the United States and Japan also left interest rates unchanged.

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