Swiss central bank holds rate

The Swiss central bank kept its key interest rate unchanged at a record low on Thursday, but hinted of rate raises in coming quarters as inflation is expected to grow in 2012 and 2013. The central bank raised its growth forecast to 2 percent from 1.5 percent, although it warned that higher oil prices and the consequences of the devastating Japanese earthquake and an ensuing nuclear crisis are still uncertain.
"The Swiss National Bank is maintaining its expansionary monetary policy," said the bank in a statement. "It is leaving the target range for the three month Libor rate unchanged at 0.0 - 0.75 percent, and intends to keep the Libor within the lower part of the target range at around 0.25 percent." However, it noted "that geopolitical tensions and rising commodity and food prices lead to upside risks to inflation across the globe."