Swiss National Bank remained constant reference point for corridor 3-month LIBOR under 0,00-0,75% to a 0.25%. The commentary markets latched on to reduce the projected inflation rate for next year. As described in the report, while maintaining the inflation rate unchanged in the current year will amount to 0,7% in 2011 0,3%, and in 2012 1,2%. That is, for projected future the Bank saw no reason to tighten monetary policy to battle inflation.
This is very bad news for the franc, as many experts had expected to hear more clearly than in June, the intention of raising rates. This has not happened, despite improvements in forecasting of the dynamics of GDP growth. It is reported that this year it will grow by 2,5% (previously expected growth of 2,0%). Nevertheless, for the next year promises to pay for expensive franc today. In addition okolodeflyatsionnogo rise in consumer prices is projected noticeable drop in the growth rate of GDP (which is not specified). The dollar / franc rebounded from parity up to half the figures, the euro / franc with the minimum of the day added nearly three figures. This massive and apparently prolonged closure of shorts. Still franc will determine monetary policy and may be operated in manual mode.
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