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UPDATE 1-Jordan:SNB still ready to intervene on franc-press

Published 08/18/2009, 11:07 AM
Updated 08/18/2009, 11:18 AM

* SNB will not tolerate franc rise vs euro, Jordan says

* Not yet time to step away from unconventional measures

* Confirms previous forecast of 2009 GDP drop

(Adds details and comment)

ZURICH, Aug 18 (Reuters) - The Swiss National Bank will not tolerate a rise in the Swiss franc against the euro, and it is not yet time for it to step away from unconventional easing measures, board member Thomas Jordan was quoted as saying.

The SNB expects Swiss gross domestic product to shrink by 2.5 to 3 percent this year, Jordan was quoted as saying by the newspaper HandelsZeitung, confirming the central bank's previous forecast. Growth should turn positive by mid-2010, he said.

"We have always made clear that we will not tolerate a rise of the franc against the euro. We believe an appreciation right now is economically dangerous and not justified," Jordan told HandelsZeitung,

The central bank had the necessary tools to take action, he added in an interview, released ahead of publication in Wednesday's edition.

Jordan said Switzerland will probably recover later than other countries as it fell into recession later and it was too early for a normalisation of monetary policy.

"At the moment there are no signs that we need to consider a change in monetary policy," he said. "In mid 2010, GDP growth in Switzerland should return to positive territory." (Reporting by Sam Cage and Katie Reid; editing by David Stamp)

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