FRANKFURT (Reuters) - The Swiss National Bank remains committed to its ultra-loose monetary policy and sees the Swiss franc as currently “highly valued”, Chairman Thomas Jordan said on Thursday.
But at an event in Frankfurt he avoided reiterating his until summer oft-repeated statement that the franc was “significantly overvalued”, a mainstay of the SNB’s communications since it suddenly scrapped a limit on the franc against the euro two and a half years ago.
Jordan added that the central bank’s negative interest rate, currently at minus 0.75 percent, was an important tool for managing inflation, and that the bank still had “room to manoeuvre” in its monetary policy.
Over the past two and a half years, the SNB has used a combination of negative interest rates and currency market interventions to curb demand for the safe-haven franc, whose strength has weighed on Switzerland’s export-reliant economy.
Reporting by Tom Sims; Editing by Arno Schuetze