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Swiss battle against too much money

Thursday, June 14 08:37:51

The Swiss National Bank reaffirmed its commitment today to defend a cap of 1.20 per euro on the franc's value, days before a Greek election that could drive another flood of money from the euro zone into the safe-haven currency. The SNB kept the target band for the Swiss franc LIBOR at 0 to 0.25 percent, as all economists in a Reuters poll had forecast.

Following its quarterly policy review, it also raised its growth forecast for the year as expected to 1.5 percent, from close to 1 percent, as strong domestic consumption offsets some of the hit to exports from the strong franc. The SNB set the cap of 1.20 on the safe-haven unit on Sept. 6, citing the risk of deflation and a recession as the strong currency hurts exporters and the tourism industry. ( C ) Reuters