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16.06.2016 13:04

Swiss National Bank keeps its rates steady at -0.75% in March, but it upgrades its economic inflation forecasts

The Swiss National Bank (SNB) released its interest rate decision on Thursday. The central bank kept the rates on sight deposits at minus 0.75% and said that the bank will remain active in the forex market if needed.

The SNB noted that the Swiss franc was still significantly overvalued.

Inflation was upgraded to -0.4% in 2016 from the previous forecast of -0.8%. The central bank expects inflation to be 0.3% in 2017, up from the previous forecast of 0.1%.

The upward revision was driven by a recent rise in oil prices.

The central bank noted that global economy was expected to expand moderately over the coming quarters, adding the referendum on Britain's membership in the European Union was a risk to the outlook.

The SNB expects the Swiss economy to grow between 1% and 1.5%, unchanged from its previous estimate.

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