The Swiss National Bank on Thursday left its key policy rate and expansionary monetary policy unchanged, but said it "remains willing to intervene in the foreign exchange market as necessary." The central bank said it was also tweaking the basis for calculating negative interest rates on sight deposits -- deposits that can be quickly pulled out or without any notice -- at the SNB. The bank said its expansionary monetary policy is still needed owing to international developments and the country's inflation outlook. "Negative interest and the willingness to intervene are important in order to counteract the attractiveness of Swiss franc investments and thus ease pressure on the currency. In this way, the SNB stabilises price developments and supports economic activity," the bank said. Its conditional inflation forecast for the current year was lowered to 0.4% from 0.6% in the previous quarter, and its growth forecast was cut to between 0.5% and 1% for 2019 as a whole,compared to around 1.5% in June. The Swiss franc /zigman2/quotes/210561153/realtime/sampled EURCHF -0.0659% dropped 0.3% against the euro to 1.0968 francs, and fell 0.4% to 0.9928 franc /zigman2/quotes/210561981/realtime/sampled USDCHF -0.3174% versus the dollar.
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