SNB Says Franc Ceiling ‘Essential’ to Protect Economy

The Swiss National Bank (SNBN), led by President Thomas Jordan, kept its ceiling on the franc at 1.20 per euro. Officials also left the band for the benchmark interest rate unchanged at zero percent to 0.25 percent, as forecast by all 21 economists in a Bloomberg News survey.

“The risk of less favorable global economic developments has decreased somewhat compared to the last quarter,” the Zurich-based central bank said in a statement on its website today. “Nevertheless, structural problems in Europe persist, which could cause new tensions on the markets.”

Citing the risk of deflation and a recession, the SNB set the ceiling in September 2011 after investors anxious about the region’s sovereign debt crisis pushed the franc, popular as a haven at times of turmoil, close to parity with the euro. While the euro area emerged from recession in the second quarter, European Central Bank President Mario Draghi has warned against overestimating its recovery.

Read More: www.bloomberg.com/news/2013-09-19/snb-affirms-franc-ceiling-commitment-to-protect-swiss-economy.html