Wealth

All three central bank directorate members said over the past week that the franc was highly valued and that the SNB would take measures, should the economy risk falling into recession and the risk of deflation, or a sustained period of falling prices, increases. Schneider-Ammann said that it will largely depend on developments in the euro zone as to whether Switzerland manages to keep growing or risks falling into recession.

Brightbridge Wealth Management Headlines: Swiss Economy Minister Warns Against Pushing Central Bank To Weaken Franc
November 13th, 2011 | Author: Brightbridge Wealth Management

ZURICH -(Dow Jones)- Swiss economics minister Johann Schneider-Ammann on Saturday warned against putting the Swiss central bank under pressure to weaken the Swiss franc.

ZURICH -(Dow Jones)- Swiss economics minister Johann Schneider-Ammann on Saturday warned against putting the Swiss central bank under pressure to weaken the Swiss franc.

“The Swiss National Bank knows what is is doing,” Schneider-Ammann said in an interview with Swiss national radio.

Pressure from politicians and industry has increased in recent weeks, calling on the SNB to raise the floor at which it lets the eurotrade against the Swiss franc to CHF1.30 from CHF1.20.

This has led to increased speculation in financial markets that the central bank may indeed soon raise the floor, though such speculation has eased in recent days when political turmoil in the euro zone increased, the euro weakened against most leading currencies, and more economists said a higher floor would be difficult to defend.

ZURICH -(Dow Jones)- Swiss economics minister Johann Schneider-Ammann on Saturday warned against putting the Swiss central bank under pressure to weaken the Swiss franc.

“The Swiss National Bank knows what is is doing,” Schneider-Ammann said in an interview with Swiss national radio.