ZURICH: The Swiss National Bank kept its lid on the safe-haven franc at 1.20 per euro on Thursday, stressing it was the right policy tool to avoid a tightening of monetary conditions.

The SNB reiterated its standard line that it would enforce the 1.20 per euro limit with unlimited interventions if necessary, and stand ready to take further measures.

The SNB confirmed its forecast that the Swiss economy would grow by around 2.0 percent in 2014.

It trimmed its inflation forecast, predicting stable prices of 0.0 percent in 2014, and a rise of 0.4 percent in 2015 and 1.0 percent in 2016. The SNB kept its target range for the three-month Libor at 0.00-0.25 percent, as analysts polled by Reuters all expected.