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UPDATE 1-SNB's Jordan says franc cap "absolutely necessary"-paper
2012年11月22日 / 早上6点27分 / 5 年前

UPDATE 1-SNB's Jordan says franc cap "absolutely necessary"-paper

* Jordan says weak economy reason to keep the franc cap-paper

* Says sees weak growth dynamics for Switzerland in 2013

* SNB gives official 2013 growth view at Dec. 13 policy meeting

ZURICH, Nov 22 (Reuters) - The Swiss National Bank still sees the 1.20 cap on the Swiss franc against the euro as “absolutely necessary” and will not rule out further measures to protect the still weak Swiss economy, the bank’s chairman, Thomas Jordan, said in an interview published on Thursday.

Asked whether a deteriorating economic situation in Switzerland was a reason for the SNB to readjust the franc cap, Jordan said: “It is above all a reason to keep the minimum exchange rate. The weak global economy and the difficult situation for sectors exposed to international competition clearly show us that it is absolutely necessary to keep the minimum exchange rate.”

Jordan made the comments in an interview with Swiss daily Tages-Anzeiger.

The SNB capped the red-hot franc at 1.20 to the euro more than a year ago to stave off deflation and recession. The franc cap has helped Switzerland’s exporters, who are suffering because the strong franc makes their products more expensive abroad.

Jordan also said the SNB expects Swiss economic growth to continue to be weak next year. The central bank issues its 2013 forecast at its next regular rate-setting session on Dec. 13.

“Given the weak global development, we expect ongoing weak dynamics in our country. The economic situation might, however, improve a little over the course of next year,” he said.

SNB board member Fritz Zurbruegg said on Wednesday the franc cap was an extreme measure and not a cure-all for the economy.

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