SNB maintains the EUR/CHF 1.20 peg
As it was widely expected, the Swiss National Bank kept its 3-month target rate at 0.00-0.25%. The EUR/CHF cap was maintained at 1.2000. The regulator underlined it is ready to buy unlimited quantities of foreign currency if needed.
The SNB sees moderate recovery of Swiss economy continuing: the economy is expected to expand by 2% in 2014. However, substantial downside risks still remain. The swiss franc remains elevated.
According to analysts at UBS, the Swiss central bank will follow the ECB in lowering rates if EUR/CHF falls to the 1.2000 peg.