The Swiss National Bank has kept its key interest rate at 0% for the fourth time in a row.
The decision was widely expected, but the bank warned it is now more prepared to intervene in currency markets to counter a rapid rise in the franc — which has been climbing as investors flee geopolitical tensions to the safe haven.
Inflation in Switzerland has edged up from 0.1% in February to 0.6% in May, driven mainly by energy prices linked to the conflict in the Middle East.
The bank now expects inflation to hover around 0.6% through next year, slightly higher than its previous forecast.
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