Comments from the Swiss National Bank's governing board member Fritz Zurbrügg:
- Says franc remains highly valued
"Currently we see no signs of a deflationary development as was experienced in the 1930s, that means negative price development across all goods and with a self-reinforcing downwards spiral"
- Says exchange rate depends on what happens in euro area, Greece
- Says CHF appreciation pressure due to both foreign, domestic investors
- Says "convinced" negative rates have reduces CHF appreciation pressure
- Says negative rates will be in force as long as monetary policy so requires
- Says SNB has gone "quite far" with deposit rate of minus 0.75% and for moment is "content" with effect
- Says 1Q data shows clear weakening of exports
- Says growth set to pick up in second half of year
- Says doesn't expect a recession
- Says knows nothing of the government being upset at cap exit; SNB informed government of decision to remove cap prior to public announcement
- Says SNB can live with current level of foreign-exchange reserves for a "long time"
- Says time will come when monetary policy situation allows foreign-currency reserves to be sold
- Says there could be another time where SNB must use balance sheet to serve monetary policy objectives
- Says doesn't believe publishing minutes of governing board meetings; with just 3 board members it would soon be clear who said what and that would lead to discussions being held outside official meetings
- Says doesn't see 1st woman joining governing board as changing decision-making; decisions based on facts; SNB has price-stability mandate
From an interview with Berner Zeitung, a Swiss German-language daily newspaper.
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