SNB Threatens Further Measures as Franc Poses Deflation Risk

The Swiss National Bank threatened to step up its defense of the franc “immediately” if needed as it noted an increased danger of deflation.

The central bank kept its ceiling on the franc of 1.20 per euro and its interest-rate target range at 0 to 0.25 percent at its policy review today, as forecast by economists. Officials cut their inflation forecast for the next two years and said that “the risk of deflation” has “increased again.”