The cap on the franc versus the euro will remain in place for the foreseeable future, Swiss National Bank President Thomas Jordan said.
The cap on the franc versus the euro will remain in place in the foreseeable future, Swiss National Bank President Thomas Jordan said.
Swiss National Bank officials will defend their cap on the franc for at least another year as they endure pressure from potential policy easing in the euro area to investor demand for safe assets, economists say.
The Swiss National Bank will maintain the cap on the franc for now and is able to support it with negative interest rates if needed, Board Member Fritz Zurbruegg said.
The Swiss National Bank should consider charging banks on excess reserves if the franc rises against the euro, the International Monetary Fund said.
UBS AG, Switzerland’s biggest bank, increased its forecasts for the franc against the euro as the Swiss currency’s world-beating gains in the past six months confound those expecting it to weaken.
The Swiss National Bank pledged to defend its cap on the franc, saying the currency remains strong and the global economic recovery is beset by risks.
Switzerland’s status among investors as safe place in times of crisis makes policy setting difficult, Swiss National Bank President Thomas Jordan said.
The Swiss National Bank will stick with its expansive policy for at least another year, economists said, giving officials a chance to read up on their history for ideas on an exit strategy.
U.S. President Barack Obama attends a Group of Seven meeting in The Hague in the coming week, called in response to the crisis in Ukraine.
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