Mubasher: The Swiss National Bank (SNB) maintained its interest rates at their ultra-low level, while lowered its inflation projections once again, as it warned that a global slowdown could get worse.

The SNB decided that the deposit rate would remain at -0.75%, as the Swiss franc’s (CHF) strength against the euro (EUR) further worsened the situation.

The Swiss central bank pushed to face a strong franc with the world’s lowest interest rates and currency interventions.

The central bank slashed its inflation projection for the fourth consecutive time, confirming its intervention pledge, while the Swiss currency was labelled again as “highly valued.” Price inflation will average 0.3% this year and 0.6% in the next.

A dramatic change in the global economy made it more difficult for policymakers in major economies to buttress price pressures.

In the US, the Federal Reserve held its interest rates at their current level. Fed chairman Jerome Powell described the lacklustre inflation in the US as “one of the major challenges of our time.”

In addition, the European Central Bank (ECB) said in its economic bulletin on Thursday that the Eurozone inflation remained “muted.”

By 11:02 am GMT, the USD/CHF pair rose 0.16% to CHF 0.9942, while the EUR/CHF pair inched down to CHF 1.1324.