Zurich, Switzerland (GenevLunch) – Interest rates will stay low, continuing the policy of monetary expansion, Switzerland’s central bank announced 10 December. The Swiss National Bank argues that the economic recovery is still too fragile to warrant a rise in interest rates which will remain in a range of 0-0.75 percent for the three-month Libor. The bank says it will keep rates at the lower end of this band, and will intervene decisively to maintain the Swiss franc stable against the Euro.

It also announced it was suspending its purchases of Swiss franc bonds issued by private sector companies, a measure introduced to provide the market with liquidity.

The economy grew out of recession in the third quarter 2009, but overall GDP will decline about 1.5 percent this year, the bank estimates. Switzerland’s economy should grow between 0.5 and one percent in 2010, the bank forecasts.

Background:“Swiss unemployment climbing, fewer foreigners’ permits“, 9 December 2009, GenevaLunch

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