The SNB left policy unchanged
As it was expected, the Swiss National Bank left its policy unchanged – 3-month Libor rate at 0-0.25% and the minimal level for the pair EUR/CHF at 1.2000.
The SNB said that that franc’s rate is still high and the central bank remains ready intervene in Forex market in unlimited amounts if necessary.
The risks for Swiss economy remain high. The SNB Chairman Thomas Jordan expects weakening of Swiss economy in Q2 compared with Q1. According to Jordan, the biggest threat is the deterioration of the euro zone crisis. Lower oil prices will probably make Switzerland suffer from stronger deflation (-0.3% vs. -0.2% in 2013).