• To defend cap with utmost determination
• Prepared to buy foreign currency in unlimited quantities
• Will continue to aim for 3-month libor at 0
• Ready to take further measures if economic outlook, deflation risks so require
• Swiss franc still high, should weaken over time
• Sees Swiss growth in 2012 at some +0.5%
• Further escalation of the European sovereign debt crisis would have grave consequences for international financial system
• Inflation will dip into negative territory sooner, owing to the effects of the earlier currency appreciation
• In the longer-term, the worsening of the growth outlook for the euro area is damaging inflation
• In the foreseeable future, there is no risk of inflation in Switzerland
• Downside risks to price stability would emerge if foreign demand falls more sharply than expected
• Sees 2011 inflation 0.2%. previous forecast 0.4%
• Sees 2012 inflation -0.3%, previous forecast -0.3%
• Sees 2013 inflation 0.45, previous forecast 0.5%