• Continues to aim for 0.25%
  • SNB sees 2010 Swiss growth at around 2% vs previous forecast of 1.5%
  • 2010 inflation at 0.9% vs previous forecast of 0.7%; 2011 inflation at 1.0% vs previous 0.9%; 2012 inflation at 2.0% unchanged from previous forecast
  • Weakening of the euro with respect to the swiss franc is dampening export activity
  • Deflationary risk for Switzerland has largely disappear
  • Inflation forecast shows short-term price stability guaranteed
  • Current expansionary monetary policy cannot be maintained over entire forecast horizon
  • Uncertainty increased since last assessment
  • Inflation forecast still associated with very considerable uncertainties
  • Latest tensions on the fin markets have increased the downside risks

SNB makes little reference to swiss franc level, EUR/CHF trading lower around 1.3807 from early 1.3870.

EDIT: SNB says to take all measures if downside risks materialise and via an appreciation of the franc lead to a deflation risk