SNB’s Hildebrand says that deflation is to be avoided at all costs and that the SNB will act decisively to fight the impact of economic contraction. The SNB could sell unlimited amount of Swiss franc and buy unlimited amounts of FX to add liquidity to the system. The SNB can provide as much liquidity as needed as long as needed, Hildebrand says.
EUR/CHF has firmed to 1.4830 in the wake of the Hildebrand comments.
