But still very close to zero:

still rising

still creeping up:

It still is negligible. Considering the problems in euro zone and potential problems in CH I highly suspect that it is going to go up any time soon. Considering the lower interest rate regime government are going to resort to.

Another argument which suggests it could go up to the reasonable level is that 2-3 months back there was an excess demand for CHF as safe heaven. Now that demand for CHF has faded and so is the oversupply, it should go up a bit but I suspect not too much. We are looking at the range of .1 to .5 in next 12 months.

What do you think?

I thought now they fixed my mortgage rate for the next 3 months it would drop down again

ECB are forecast to cut their rates this week
Federal reserve said they would keep rates low for one (or was it 2) years.
Bank of England said something similar

So why would the Swiss do something like a rate rise to make buying CHF more attractive?

Marton, as first part f my argument says that from Policy stand point it is going to be low interest rate regime. So same view as what you said.

But from trading point of view (CHF libor chart shown is based on the rate in trading floor and not the one pegged by government). This is determined by demand and supply. So from that prospective it is going to get more realistic. So look at the chart here

Overnight Euro LIBOR 0.61643 % 12-05-2011
USD LIBOR - 1 month 0.27410 % 12-05-2011
CHF LIBOR - 3 months 0.05167 % 12-05-2011
GBP LIBOR - 6 months 1.33406 % 12-05-2011
JPY LIBOR - 9 months 0.47429 % 12-05-2011
CAD LIBOR - 12 months 1.77000 % 12-05-2011

CHF has one of the lowest Libor, offcourse we are not looking at all apple as the term is different for different currencies but still just to make the point. this is governed by the demand and supply of the currency and boradly by the government policy.

So in past as they needed more and more CHF in the market, the rates were lower meaning high demands for CHF so CHF gives less incentive to the holder. For currencies with relatively lower demands would have higher libor to attract the buyers. Off course this is a simplistic view and there are large number of factors.

Going by this logic the reference rate set up by govt bodies, (SNB, Fed, BOE, ECB) would remain low but the Libor rate might get to more reasonable levels.

But as it happens in the financial world, it is one view from one point of view. There could be lot fo counter arguments. Hope I am able to explain myself better this time around

Ah, no, not really.

You do know the Swiss banks are being investigated for "fixing" Libor rates. No doubt it is not true.

Still creeping up; now almost .06

3 momth LIBOR is now around 0.08 so still creeping up for no apparent reason.
Meanwhile the Swiss banks continue being investigated for "fixing" Libor rates & according to today's FT a number of senior UBS traders in this area have been suspended/fired/laid off or whatever including Zürich based traders & similarily traders employed by some other major banks.

Just got my new fix for the 3 months to June. At just a shade under 1%, it will probably be worthwhile for me to pay off the LIBOR loan if it goes higher.