SNB Will Cap Franc as Long as Deflation Risks Persist
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The Swiss National Bank will maintain its cap on the franc as long as necessary to ward off deflation and doesn’t consider creating a sovereign wealth fund for its currency reserves “sensible,” board member Fritz Zurbruegg told L’Hebdo.
“The floor rate will remain in force as long as necessary to carry out our mandate of maintaining price stability,” Zurbruegg said, according to an interview with the French-language newspaper published tomorrow. “The current exchange rate still seems overvalued.”