SNB adjusts three-month inter-bank target
The Swiss National Bank said on Thursday that it was increasing its three-month Libor (London inter-bank offered rate) by 25 basis points to 2.75% in an effort to calm the Swiss franc money market.
The three-month Libor has hit 2.9% over recent weeks after the impact of the US subprime crisis led to a lack of liquidity in Swiss money markets.
The central bank said inflation should average 0.6% for 2007, 1.5% for 2008, and 1.8% for 2009 if the 2.75% target is met.
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