The Swiss National Bank kept its key interest rate target at 0.25 percent Thursday, saying economic conditions were not right for a move and that while recovery is under way, it remains fragile.
The SNB will continue its supply of liquidity to the economy but purchase of Swiss franc bonds issued by private sector borrowers will stop, the bank said.
The SNB said its three-month interest rate band remains at zero to 0.75 percent.
Economic output is expected to fall by around 1.5 percent this year, the SNB said. That outlook is somewhat more optimistic than in September, when the bank estimated the country's GDP would fall up to 2 percent.
The SNB said it still expects negative inflation of 0.5 percent this year.
The central bank said that for next year it expects real GDP growth of between 0.5 percent and 1 percent.
Inflation is expected to reach 0.5 percent next year and 0.9 percent in 2011, it said.
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