May 20 (Reuters) - The Swiss National Bank has been
intervening in the currency market in recent weeks to prevent
gains in the franc
Since its latest policy meeting on March 11, officials have
repeatedly said the SNB would decisively counter excessive
appreciation in the currency against the euro
Below are some comments from SNB policymakers since that meeting:
SNB VICE-CHAIRMAN THOMAS JORDAN, MAY 20:
"Through the financial crisis there was big pressure on the Swiss franc. The franc appreciated, but the central bank acted against this upwards pressure so that there wasn't an excessive appreciation."
The Swiss economy and its exporters were recovering well, also pointing to higher inflation risks, but a worsening of the debt crisis in the euro zone could lead to a return of recession and deflation dangers, said Jordan, who heads the SNB's department in charge of financial stability.
"The national bank must undertake a balancing act between these two opposing risks."
For the full story click: [ID:nLDE64J1XQ].
SNB BOARD MEMBER JEAN-PIERRE DANTHINE, MAY 20
"Theoretically there is no limit to forex intervention," Danthine said. [ID:nWEA3366]
SNB CHAIRMAN PHILIPP HILDEBRAND, MAY 17
"The flight out of the euro leads to strong appreciation pressures on the Swiss franc and puts price stability and the economic recovery in Switzerland at risk.
"Especially over the past years of crisis, the national bank has proven that it is able and willing to do this," Hildebrand said. "I can assure you that this will continue to be the case in the future." [ID:nLDE64G1Q2]
HILDEBRAND, MAY 11
"We will not allow any excessive appreciation that might generate deflation risks." [ID:nWEA1715]
HILDEBRAND, MAY 9
"Problems with stability in the euro zone automatically affect Switzerland negatively and are therefore very worrying to all of us."
The SNB's aim was to avoid deflation as well as inflation, Hildebrand said. "That defines our policy with regards to the exchange rate: We will not allow that the euro zone problems and an excessive rise in the franc linked to them will lead to deflation in Switzerland." [ID:nLDE648030]
HILDEBRAND, APRIL 30
"The most recent financial market concerns that have arisen about the public finances of individual euro area countries represent a considerable risk (with regard to inflation).
"The SNB will not ... allow such a development to turn into a new deflation hazard for Switzerland. ... For this reason, it is acting decisively to prevent an excessive appreciation of the Swiss franc.
"The challenge lies in selecting the right moment for a normalisation of monetary policy." [ID:nLDE63T0P7]
JORDAN, APRIL 25
"At the moment, the interest rate level is correct ... However, if interest rates stay so low for a prolonged period markets could experience distortions -- especially in the real estate and mortgage market. We're looking at that closely." [ID:nLDE63O04R]
JORDAN, APRIL 15:
"The renewal of regulation does not aim to punish the banks. ... The new framework could be the catalyst for a promising business model for banks, based on sustainability." [ID:nLDE63E1SC]
DANTHINE, APRIL 10:
"We have underlined that we will act decisively against any excessive rise in the Swiss franc," Danthine told the newspaper Le Temps. "If we judge it appropriate to intervene to fight a rise in the franc, we can buy foreign currencies without limitation." [ID:nLDE63906M]
DANTHINE, MARCH 31:
"The expansionary monetary policy is appropriate at the present time." [ID:nWEB8114]
HILDEBRAND, MARCH 23:
"If you want to assess the success, then you should not only look at a certain exchange rate, but look at the success of the Swiss economy.
"We have a broad range of means to prevent an excessive appreciation and we are going to do this to ensure that the recovery can continue.
"The instruments are clear: We buy foreign currencies. We can do that in very large quantities." [ID:nZAT010782]
DANTHINE, MARCH 18:
"What is certain is that the current expansionary monetary policy cannot be maintained indefinitely without incurring inflation risks.
"Therefore, households and firms should prepare themselves for a return, sometime in the future, to a world of higher interest rates, with exchange rates being guided by market forces." [ID:nLDE62H2EE] (Editing by John Stonestreet and James Dalgleish)