SNB ready to weaken franc

THE Swiss National Bank is ready to take further measures to weaken the Swiss franc if the economic outlook and deflationary development make it necessary, its chairman said yesterday in a newspaper interview.

“The franc is still highly valued versus the euro at the current exchange rate. We expect it to weaken further over time,” Philipp Hildebrand was quoted as saying by Swiss Sunday newspaper NZZ am Sonntag.

“If that was not the case, it could lead to deflationary trends and weigh strongly on the economy. If the economic outlook and the deflationary development make it necessary, we are ready to take further measures.”

SNB board member Jean-Pierre Danthine also insisted on the bank’s readiness to take action in a speech earlier last week.