- Swiss National Bank
The Swiss National Bank kept its monetary policy intact, while highlighted increased deflationary threat and the strength of the Swiss Franc. The central bank kept its ceiling of 1.20 per Euro and the target range for its benchmark interest rate at zero to 0.25%. The possibility of quantitative easing by the European Central Bank has pushed the Franc toward the SNB's ceiling. Officials did not exclude the prospect of further steps, to defend the cap the bank introduced three years ago. Policy makers cut their forecasts for inflation for the next two years, due to combination of a strong nation's currency and falling oil prices, while upgrading this year's outlook for economic growth. Although Swiss growth was "unexpectedly favorable" in the three months through September, subdued demand for Swiss goods and lower capital investment are likely to weigh on the economy, which is expected to slow in the final quarter of the year. Swiss third-quarter economic output grew 0.6% on the quarter and 1.9% on the year, driven by stronger exports and spending in the private and public sectors. The SNB estimates slightly higher growth of 1.5% to 2% for this year, largely due to statistical revisions. For next year, the central bank projects growth of around 2%, but a major concern for the bank remains the boom in the country's real-estate market, driven by low interest rates and the migration of cash-rich foreigners.
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