Economics
SNB Warns Markets It’ll Keep Up Fight Against Franc Strength
- Deposit rate kept at record low of -0.75%, as forecast
- GDP to shrink 6% on weak foreign trade and household spending
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The Swiss National Bank said aggressive foreign exchange interventions remain its main tool for pushing back against the appreciation in the franc caused by the coronavirus pandemic.
Keeping interest rates unchanged, SNB chief Thomas Jordan reiterated that the currency is “highly valued,” and said the central bank will continue to sell it as needed. Officials warned that the economy will contract about 6% this year, the most since the 1970s, and consumer prices will drop.