SNB holds rates steady; to continue unconventional measures

Low interest rates, covered bond purchases and forex intervention remain the SNB policy. The full press release is here. They will continue to act decisively to prevent any strengthening in the franc versus the euro.

The SNB raised GDP forecasts for 2009 to -1.5% to -2.0%. That is up from -2.5% to -3.0%.

Inflation is seen falling 0.5% this year and rising 0.6% next year and +0.9% in 2011.