BERNE, June 20 (Reuters) - The Swiss National Bank reaffirmed its commitment on Thursday to defend a cap of 1.20 per euro on the franc, saying the safe-haven currency remained too strong and risks were still high for the economy.
'An appreciation of the Swiss franc would compromise price stability and would have serious consequences for the Swiss economy,' the SNB said in a statement after its quarterly monetary policy meeting.
The SNB kept the target band for the Swiss franc LIBOR at 0 to 0.25 percent, as all economists in a Reuters poll had forecast.
The SNB kept its growth forecast for the year at 1-1.5 percent and trimmed its inflation forecast for 2013 to -0.3 percent from a previous -0.2 percent.
The SNB imposed the lid on the safe-haven unit in September 2011, citing the risk of deflation and a recession as the strong currency squeezed exporters and the tourism industry.
(Reporting by Zurich Newsroom) Keywords: SWISS SNB/RATES
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