By William L. Watts
LONDON (MarketWatch) -- Switzerland's central bank on Thursday said it left its key lending rate unchanged and would maintain its "expansionary" monetary policy. As expected, the Swiss National Bank said it would leave its target range for three-month Libor unchanged at 0% to 0.75% and that it intends to keep Libor within the lower part of the target range at "around 0.25%." In a statement, the central bank noted worries about stability in the euro zone have led to renewed financial market tensions, causing the Swiss franc to rise. The Swiss currency hit a new record high versus the euro earlier this month. The central bank warned that it would act to ensure price stability "if a deflation threat emerges," which presumably points to the possibility of renewed currency intervention or some wider form of asset purchases, said Jonathan Loynes, chief European economist at Capital Economics. The euro traded at 1.2837 francs versus the Swiss currency, up 0.4% from Wednesday.
