Swiss National Bank keeps expansive policy in place despite inflationary pressures

The Swiss National Bank is keeping its ultra-loose monetary policy in place, the central bank said on Thursday, while raising its inflation forecasts as the global economy recovers from last year's pandemic. The SNB kept its policy rate locked at -0.75%, as unanimously forecast by economists in a Reuters poll.


Reuters | Updated: 17-06-2021 13:28 IST | Created: 17-06-2021 13:12 IST
Swiss National Bank keeps expansive policy in place despite inflationary pressures
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The Swiss National Bank is keeping its ultra-loose monetary policy in place, the central bank said on Thursday while raising its inflation forecasts as the global economy recovers from last year's pandemic.

The SNB kept its policy rate locked at -0.75%, as unanimously forecast by economists in a Reuters poll. The central bank also kept the interest rate it charges commercial banks on some deposits they park overnight at -0.75%, as expected.

The SNB said the franc remained highly valued. The currency has regained strength in recent weeks as other central banks kept their interest rates low. The SNB also followed the European Central Bank and the U.S. Federal Reserve in raising its inflation forecasts.

The Swiss central bank, which targets inflation in a range of 0% to 2%, now expects inflation of 0.4% in 2021, compared to its March forecast of 0.2%. Higher inflation is now expected in the next two years, with rates of 0.6% in both 2022 and 2023, up from its previous expectation of prices rising by 0.4% and 0.5%, respectively.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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