- AIMING TO DEFEND 1.20 FX GOAL!!!
- Will continue to aim for 3-month libor at 0
- Aims for sight deposits over 200 bln
- Sees GDP growth in 2011 at 1.5-2% (previous forecast 2%)
- SNB is PREPARED TO BUY FOREIGN CURRENCY IN UNLIMITED QUANTITIES
- Even at a rate of 1.20, the swiss franc is still high and should continue to weaken over time
- Sees 2011 inflation at +0.4% (previous forecast +0.9%)
- Sees 2012 inflation at -0.3% (previous forecast +1.0%)
- Sees 2013 inflation at +0.5%(previous forecast +1.7%)
- If the economic outlook and defltion risks so requirem the SNB will take further measures
- No risk of inflation in foreseeable future
- There are downside risks for price stability should the swiss franc not weaken further
EUR/CHF very marginally firmer in wake of SNB rhetoric, presently at 1.2070.
