SNB Ready for Additional Measures

The Swiss National Bank is prepared to take measures to supplement its cap on the franc, Governing Board Member Fritz Zurbruegg said.

“There’s no discussion, we will with utmost determination make sure that the minimum exchange rate is not questioned, either with unlimited purchases of foreign currency, and if necessary we will take further measures immediately ,” he said in a speech in Geneva late yesterday. “We have a franc that is highly valued.”

The SNB, based in Zurich and Bern, set a ceiling of 1.20 per euro on the franc three years ago to ward off deflation and a recession. SNB policy makers have repeatedly pledged to take steps, including negative interest rates, to supplement the cap immediately if warranted. The European Central Bank has already cut its deposit rate to minus 0.2 percent in a bid to stimulate price growth.

Bloomberg

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