During the year, two specific factors necessitated several reassessments of the situation. First, it became increasingly clear that there would be a delay in the expected recovery and that the original economic growth forecast of 1.0% would not be achieved. The second factor was the appreciation of the Swiss franc. The Swiss franc had already firmed markedly, both in nominal and real terms, in the wake of the terror attacks in the US of September 11. After the pressure had eased temporarily, the Swiss franc again appreciated slightly in April and July. The appreciation of the Swiss franc in conjunction with an unchanged interest rate would have had the same effect as a more restrictive monetary policy. This was undesirable against a background of unexpectedly weak economic growth and low inflation.
