SNB raises rates, sells gold
Commenting on the monetary policy decision the SNB said: "Switzerland's economy is in excellent shape. Indeed, the economy is developing even
better than expected back in March. For 2007, the National Bank now expects real GDP to grow at a rate of close to 2.5%."
The central bank added that if rates remained unchanged at 2.5% it expects an average annual inflation rate of 0.8% in 2007, 1.5% in 2008, and 1.7% in 2009.
Commenting on the gold sales, the SNB said the move falls "within the bounds set by the second Gold Agreement. According to the agreement, the central banks of the Eurosystem, the Sveriges Riksbank and the Swiss National Bank, agreed to limit their gold sales over a period of five years, beginning on 28 September 2004.
The SNB said the overall level of currency reserves will remain unchanged.
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