Swiss National Bank keeps expansive policy to check overvalued franc

ZURICH, Sept 15 (Reuters) - Switzerland’s central bank on Thursday kept its expansive monetary policy intact, holding its negative interest rates at record low levels despite mounting criticism of the policy that has hurt banks and pensions.

The Swiss National Bank kept its target range for three-month Libor at -1.25 to - 0.25 percent, as expected by economists in a Reuters poll. It also kept its interest rate on cash deposits at -0.75 percent, as expected.

“The Swiss franc is still significantly overvalued,” the SNB said in a statement.

“The negative interest rate and the SNB’s willingness to intervene in the foreign exchange market are intended to make Swiss franc investments less attractive, thereby easing upward pressure on the currency.” (Reporting by John Revill; Editing by Michael Shields)