Swiss monetary framework a model of distinction

The Swiss National Bank's unique monetary policy model has allowed the real economy to escape the worst of the financial turmoil, says the International Monetary Fund (IMF).

The Swiss model targets an interest rate range determined by the London Interbank Offered Rate (Libor), a measure of money-market borrowing costs for banks operating in London, for three-month Swiss franc loans. This contrasts with the operations of the majority of central banks in industrialised countries, which target o