Vlady Mihai: The institution, headed by Philipp Hildebrand, keep the Libor target rate to zero to three months after last month surprised by its reducereea to 0.25%. Analysts polled by Bloomberg had anticipated the decision. The bank reiterated that it will defend the ceiling imposed on the French during "maximum determination" and warned that it expects the economic stagnation in the second half of the year that the decline in consumer prices next year.
"I am very, very pessimistic. Deflation forecast for next year seems exaggerated. It could only serve as justification for introducing monetary ceiling," said Ulrike Rondorf, an analyst at Commerzbank.
Swiss currency remains above the threshold of 1.2 units per euro after the Bank introduced the ceiling. At 11:05, the franc is trading for 1.2079 euros at 11:05 in Zurich.
For 2011, Swiss Bank has increased its forecast for economic growth from 2% to 1.2 to 2% and inflation from 0.9% to 0.4%. The following year, consumer prices could fall by 0.3% and will rise by 0.5% in 2013.
I always considered a Swiss bank a very good and serious bank.
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