RUESCHLIKON: The Swiss National Bank's cap on the franc remains a key part of monetary policy and it will be maintained as long as required, a central bank board member said on Friday.
"It's clear that the minimum exchange rate of 1.20 is absolutely central to prevent an unwanted tightening of monetary policy conditions," Fritz Zurbruegg said in a speech in Rueschlikon, near Zurich.
The cap will remain in place for as long as necessary, Zurbruegg said.
The safe-haven Swiss franc is hovering close to the 1.20 per euro limit imposed by the Swiss central bank in 2011, when the currency's strength squeezed exporters and threatened deflation.
Comments
Comments are closed.