Swiss central bank holds rates, hikes GDP forecast
The Swiss central bank held its key interest rate at a range of zero to 0.75 percent.Geneva – The Swiss central bank on Thursday held its key interest rate at a range of zero to 0.75 percent as it predicted a smaller recession for 2009 than previously forecasted.
"The global economy has improved over the past few months and the downturn in the Swiss economy has proved to be considerably less than had been forecast in the second quarter," the Swiss National Bank said in a statement.
The Swiss economy is now expected to contract by between 1.5 and 2.0 percent rather than the 2.5 to 3.0 percent forecasted just three months ago, it said.
"There are two reasons for this revision: global economic growth has resumed more quickly than expected and, as early as the second quarter, the fall in Swiss GDP was less deep than anticipated," it said.
However, the SNB said that even with the recent "encouraging economic signs, uncertainty as to future developments remains considerable."
As a result, it was keeping the interest rate at its current level.
AFP / Expatica