The Swiss National Bank on Thursday reaffirmed its currency ceiling as a strong franc still poses challenges to achieve expected inflation even though interest rate remains at zero percent. The SNB retained its minimum exchange rate of CHF 1.20 per euro. The bank also reiterated that it stands ready to enforce the minimum exchange rate, if necessary, by buying foreign currency in unlimited quantities, and to take further measures as required. The central bank also left its target range for the three-month Libor unchanged at 0.0-0.25 percent. ING Bank NV's economist Julien Manceaux expects no change in the exchange rate policy before late 2016 and in the interest rate policy before early 2016. With the three-month Libor close to zero, the currency ceiling continues to be the right tool to avoid an undesirable tightening of monetary conditions in the event of renewed upward pressure on the Swiss franc, the bank said. The combination of a sluggish economic recovery, very low inflation and a still strong currency will keep the SNB in a very accommodative mode for the foreseeable future, said Jonathan Loynes, chief European economist at Capital Economics. The SNB adjusted its inflation projections downward by 0.2 percentage points for both 2014 and 2015. The bank cited internationally declining inflation rates and the slightly stronger Swiss franc as delaying the rise of inflation into positive territory. or 2014, consumer prices are forecast to remain flat, instead of a 0.2 percent rise estimated in December. Likewise, the inflation estimate for the next year was lowered to 0.4 percent from 0.6 percent. In 2016, inflation should increase to 1 percent. Consequently, the bank noted that no inflation risks can be identified for Switzerland in the foreseeable future. The bank expects economic activity to pick up again from the first quarter of 2014. For 2014 as a whole, the SNB is still anticipating GDP growth of around 2 percent. On mortgages, the SNB said the proposal to increase sectoral countercyclical capital buffer with effect from June 30, will result in a temporary rise in capital requirements for mortgage loans on residential property. The SNB said it will continue to monitor the situation on the mortgage and real estate markets closely, and regularly reassesses the need for an adjustment of the countercyclical capital buffer.