"The moves from the ECB have brought some confidence back (to the market)"
- CNBC
The Swiss National Bank left the target range for the three-month Libor rate unchanged at 0.0-0.25% on Thursday, in line with analysts' expectations. The bank also trimmed its growth expectations with a GDP growth forecast of 1% for 2012, down from 1.5% projection made in June. Inflation target rates are -0.6% for 2012, 0.2% for 2013, and 0.4% for 2014.
"As expected, the SNB has reduced its growth forecast which was also due to the reduction in the GDP data this year and last. The SNB has a clouded economic outlook (which) has deteriorated from the last announcement," -CNBC.
"On the other hand the tail risk from the euro debt crisis has faded a little bit - the moves from the ECB have brought some confidence back (to the market). If you compare the situation to two months ago it has improved a lot. The SNB still has to buy (to defend the cap) but not as much as in the previous two months."
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies edged higher 0.36 per cent to 6,513.22. The broader Swiss Performance Index climbed 0.36 per cent to 6,038.72.
© Dukascopy Bank SA