SNB affirms -0.75% interest rate on sight deposits

The Swiss National Bank (SNB) kept the interest rate on sight deposits steady at -0.75% during its monetary policy assessment this Thursday. The SNB also kept the 3-month Libor target range unchanged at -0.25% to -1.2%.

Key Headlines:

Sees 2016 growth at 1.0-1.5 pct (previous forecast was for 1.0-1.5 pct)

Sees 2016 inflation at -0.4 pct (previous forecast was for -0.8 pct)

Sees 2017 inflation at 0.3 pct (previous forecast was for 0.1 pct)

Expects the moderate growth in the global economy to sustain over the coming quarters

Swiss Franc is still significantly overvalued

Imminent UK referendum on whether to stay in the European Union may cause uncertainty and turbulence to increase

Indicators suggest that the recovery will be ongoing

Exports are likely to continue to recover