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SNB holds steady – Capital Economics

By FXstreet.com,  December 13, 2012, 05:53:00 AM EDT

FXstreet.com (Barcelona) - Jonathan Loynes, Chief European Economist at Capital Economics notes that as expected, the SNB left all elements of its policy stance unchanged at its quarterly monetary policy assessment.

Alongside leaving the target range for 3 month Libor at 0-0.25%, it reaffirmed its commitment to enforce its Euro floor of 1.2000 with "utmost determination". Meanwhile, the forecasts for both GDP growth and inflation were left broadly unchanged from those presented in September.

He writes, "The upward pressure on the Franc has eased in recent months as the euro-zone situation has stabilised a bit and several large Swiss banks have imposed charges on CHF deposits. But even at current levels, the currency is likely to act as a drag on growth in the coming quarters. And if we are right in expecting the euro-zone crisis to re-escalate, safe haven flows into the currency may well pick back up again, providing a sterner test of the SNB's determination."




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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