Sweden's central bank, meanwhile, raised its key policy rate by a quarter of a percentage point to 4%, as expected, and said it might need to do more to bring inflation back to its 2% target.
SWISS FRANC: The franc fell sharply after the SNB rate decision and was last down 0.7% against the dollar at 0.9044.
SWEDISH CROWN: The Swedish crown rallied and was last up 0.6% against both the euro and the dollar.
KARSTEN JUNIUS, CHIEF ECONOMIST, BANK J. SAFRA SARASIN, ZURICH:
"Great decision of the SNB that demonstrates its independence of the ECB and other central banks. As we predicted, it left its policy rate unchanged, as inflationary pressures have moderated, the Swiss franc has appreciated and the economy is showing signs of slowing down."
"We also welcome the communication of the SNB, indicating that another rate hike is possible. Hence, the SNB opted for a hawkish pause rather than a dovish hike which keeps up the tension in money markets such that the there will not be a discussion when the first rate hike comes."
JAN VON GERICH, CHIEF MARKET ANALYST, NORDEA, HELSINKI:
"The main message still is that we are close to the peak."
"The weakening growth outlook is becoming more visible and inflation is coming down, so it's a fine balance act for central banks."
"The SNB has not been as keen, as the say, the Fed, in doing what the market is expecting."
"For the Riksbank, the weak currency is one reason why they are hiking interest rates."
(Reporting by the Markets Team, Compiled by Dhara Ranasinghe; Editing by Amanda Cooper)