Monetary policy assessment at year-end
Central bank: snb | Type: statement | Date: 2004-12-16

Communications
P.O. Box, CH-8022 Zurich
Telephone +41 44 631 31 11
Telefax +41 44 631 39 10
Zurich, 16 December 2004
Press release
Monetary policy assessment at year-end
National Bank leaves the target range for the three-month Libor rate unchanged at 0.25%–1.25%
being, it intends to keep the rate in the middle of the target range at around 0.75%.
Economic growth in Switzerland has lost some of its momentum. For this year, the National Bank continues to anticipate GDP
growth to be close to 2%. In the coming year, it expects the economy to expand by 1.5% to 2%. On the assumption that the
three-month Libor rate will remain unchanged at 0.75%, the National Bank expects an annual inflation rate of 1.1% in 2005
and 1.3% in 2006. Less dynamic growth, the weaker US dollar and the decline in excess liquidity have dampened the
anticipated inflationary pressure somewhat. The target range for the three-month Libor rate will therefore be left unchanged,
and the rate will again be kept in the middle of the range. The National Bank’s monetary policy continues to have an
expansionary effect. Should unexpected developments push up the Swiss franc sharply, the National Bank will take
appropriate action.