Bern, Switzerland (GenevaLunch) – The Swiss central bank (SNB) will maintain the monetary policy it introduced in March, it announced today 18 June. Its predictions for the Swiss economy continue to be guardedly pessimistic, because of  the negative effects the world economy has on Switzerland. The one positive note has been the decline in the prices of commodities, such as oil, but this has contributed to deflation. Swiss prices will decline by 0.5 percent in 2009, says the Swiss state secretariat for economic affairs (SECO)  in its report yesterday 17 June.

The central bank will maintain short-term interest rates at about 0.25 percent, and promises to intervene in the currency markets in order to prevent the appreciation of the Swiss franc against the euro. The euro area countries are Switzerland’s most important trading partners.

Background: “Swiss central bank move to lower franc against euro sparks outcry abroad“, 13 March 2009, GenevaLunch

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