(RTTNews) - The Swiss franc that was trading briefly lower immediately after the Swiss National Bank's decision to maintain its interest rate erased losses shortly. While noting subdued growth and risks of deflation, the central bank in its regular quarterly monetary policy meeting decided to leave its three-month London interbank offered rate or Libor unchanged at zero. The outcome was widely expected and the bank added that it is prepared to purchase foreign currency in unlimited quantities. Further, the central bank reiterated the minimum exchange rate of Swiss franc at 1.20 per euro with the 'utmost determination'. The central bank sees subdued growth and risks of deflation. The Swiss National Bank on September 6 set a minimum exchange rate for the Swiss franc to check the sharp appreciation of the currency, citing the 'massive overvaluation' of the currency poses an acute threat to the economy. Although the central bank fixed the minimum rate at CHF 1.20 per euro, it sees the currency is still high and should continue to fall over time. Latest data from the Federal Statistical Office showed that the Swiss industrial production grew slower than expected in the second quarter. Output grew 2.3 percent year-on-year in the second quarter, compared to expectations for a 2.7 percent increase. Industrial turnover grew 3.1 percent from a year earlier. The Swiss franc that fell against the euro following the Swiss National Bank rate recouped some of its losses around 6:30 am ET. The franc is presently trading at 1.2060 against the euro, up from 6-day low of 1.2095 hit immediately following the SNB decision. Eurozone annual inflation held steady at 2.5 percent in August, in line with flash estimate, final data published by the Eurostat showed today. Monthly inflation came in at 0.2 percent in August. Core inflation that excludes energy, food, alcohol and tobacco also remained unchanged at 1.2 percent in August and matched the consensus forecast. Employment in the euro area increased at a faster pace in the second quarter, data released by Eurostat showed today. Employment increased a seasonally adjusted 0.3 percent sequentially in the second quarter, faster than the 0.1 percent growth seen in the first quarter. Year-on-year, the number of employed persons rose 0.4 percent during the three-month period, after growing 0.3 percent in the previous quarter. The franc touched a 6-day high of 0.8724 against the US dollar around 7:00 am ET, up from Asian session's low of 0.88. On the upside, the alpine unit may target resistance around the 0.87 level in near-term.

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