Investing.com - The Swiss National Bank left its benchmark interest rate unchanged at record-low levels and reiterated that it is still prepared to take further action to weaken the franc, it announced on Thursday.
The SNB said it was keeping its benchmark interest rate unchanged at -0.75%, in line with expectations. The central bank also left the target range for the three-month Libor unchanged at between -1.25% and -0.25%.
The accompanying rate statement released after the announcement said that "the Swiss franc is still significantly overvalued."
The SNB added that it will "remain active in the foreign exchange market in order to influence exchange rate developments where necessary."
"The global economic outlook has deteriorated slightly in recent months and the situation on international financial markets remains volatile," the SNB said.
"Against this background, the negative interest rate and the SNB's willingness to intervene in the foreign exchange market serve to ease pressure on the Swiss franc."
The SNB cut its forecast for economic growth this year to between 1% and 1.5%, from approximately 1.5% previously.
SNB Chairman Thomas Jordan was to comment on the decision at a press conference later in the day.
EUR/CHF was trading at 1.0985 from around 1.0989 ahead of the decision, while USD/CHF was at 0.9742 from 0.9745 earlier.
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