The SNB kept the benchmark interest rate target at 0.25% today. Jean-Pierre Roth, president of the Central Bank, declared that the economic situation in Switzerland is not ready for a correction, but at the same time relaxation of monetary policy is not necessary.
The Central Bank has pledged to intervene in the foreign exchange market to keep the CHF from appreciating against the Euro. No details were given on past or future interventions as the Bank feels that they are more effective as market participants don’t know what will trigger them.
