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Unconventional policy measures worked well-SNB Roth

Published 11/20/2009, 04:15 AM
Updated 11/20/2009, 04:18 AM

* Roth makes no comment on future monetary policy

* Says measures protected Swiss from credit spread rise

FRIBOURG, Nov 20 (Reuters) - The Swiss National Bank believes the unconventional measures it has had in place since March 2009 to fight an economic recession have worked well, central bank president Jean-Pierre Roth said on Friday.

"Those measures have been a success: they have allowed us to boost liquidity in Swiss francs, to cut risk premium on capital markets and to avoid an excessive strengthening of the francs," Roth said according to the text of a speech delivered to the University of Fribourg.

Roth made no comment regarding future monetary policy trends.

After cutting interest rates to historically low levels, the SNB decided earlier this year to extend the length of repo transactions to a year and started to buy bonds denominated in Swiss francs.

The central bank has also repeatedly intervened on the currency markets to prevent the franc from rising too much against the euro.

Roth also said that by adjusting the liquidity offer, the Swiss central bank has been able to "protect the Swiss market from a generalised rise in credit spreads".

"Our view of monetary policy has led us to be more accommodative than in Europe at the peak of the crisis," he said. (Reporting by Pascal Schmuck, writing by Lisa Jucca; Editing by Tomasz Janowski)

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