Bloomberg News

SNB Should Keep Limit on Franc, Minister Tells SonntagsZeitung

July 08, 2012

The Swiss central bank should defend its 1.20 francs per euro limit as the pressure on the Swiss currency to appreciate will increase, Economy Minister Johann Schneider-Ammann told SonntagsZeitung newspaper in an interview.

He doesn’t expect the Swiss National Bank to lower the limit, the minister said according to the newspaper.

Schneider-Ammann said that he is skeptical about the introduction of negative interest rates to prevent the franc from appreciating as experience shows that those measures aren’t effective. Still, the Swiss government is examining the possibility, the minister told SonntagsZeitung.

To contact the reporter on this story: Klaus Wille in Zurich at kwille@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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