SNB leaves interest rate unchanged, maintains EUR/CHF floor at 1.20

The Swiss National Bank kept its benchmark interest rate unchanged and reaffirmed its commitment to the minimum exchange rate of CHF1.20 per euro, it announced on Thursday.

In a statement, the SNB said it was keeping its benchmark interest rate unchanged at 0.0%, in line with expectations.

The accompanying rate statement released after the announcement said that the economic outlook has deteriorated considerably and the Swiss franc is “still high.”

The SNB “will continue to enforce the minimum exchange rate with the utmost determination. For this purpose, it is prepared to purchase foreign currency in unlimited quantities. If necessary, it will take further measures immediately."

SNB Chairman Thomas Jordan was to comment on the decision at a press conference later in the day.

EUR/CHF was trading at 1.2082 from around 1.2110 ahead of the decision, while USD/CHF was at 0.9378 from 0.9406 earlier.