SNB: The Swiss National Bank “will act decisively to prevent an
excessive appreciation of the Swiss franc against the euro,” the central
bank reiterated in its Quarterly Bulletin on Monday. The Bulletin, which
is primarily based on data available ahead of the central bank’s last
monetary policy meeting on March 11, brought little change in the
overall policy and economic outlook. “Short-term price stability is not
threatened,” it said. However, the current expansionary monetary policy
“cannot be maintained throughout the entire forecast horizon without
compromising medium- and long-term price stability,” the central bank
warned again. As the recovery of the global economy remains fragile, the
“danger of deflation cannot be entirely ruled out” should fresh external
shocks occur, the SNB said.