Swiss central bank hikes inflation forecasts, leaves rates on hold

0 Comments | AFP, June, 2008

GENEVA (AFP) — Switzerland's central bank on Thursday kept its key interest rates unchanged but raised its 2008 inflation forecast sharply to 2.7 percent from 2.0 percent due to soaring energy prices.

The Swiss National Bank (SNB) also warned there were "considerable risks" attached to the forecast and higher energy prices or a depreciation of the Swiss franc could put further pressure on prices.

"Given these conditions, the SNB is maintaining its cautious stance and leaving its monetary policy strategy unchanged," said Jean-Pierre Roth, who chairs the SNB's governing board.

He added that the central bank would "remain vigilant".

In March, the SNB had estimated 2008 inflation at 2.0 percent but since then soaring oil prices have continued to stoke...