FACTBOX-Recent Swiss National Bank policymaker comments

Jan 27 (BestGrowthStock) – The Swiss National Bank started the long
route back to normalising monetary policy at its last meeting on
Dec 10, slightly softening its pledge to fight a rise of the
Swiss franc even as it held interest rates steady.

The SNB kept its target band for the 3-month Swiss franc
LIBOR at 0.00-0.75 percent and continued to aim to keep the
LIBOR at 0.25 percent.

Below are comments from SNB policy makers since the December


* “What we do know is that at the moment certainly raising
interest rates would be inappropriate,” Hildebrand was quoted as
saying by the Wall Street Journal. “Our policy is clear: we will
resolutely prevent an excessive appreciation as long as there
are deflationary risks.” [ID:nLDE60L1YQ]

* “We continue to have considerable residual deflation
risks, particularly in the event that we were to be hit by a
renewed shock of some sort, and clearly the exchange rate shock
would be one that would be particularly damaging regarding
deflation risks,” Hildebrand the newspaper.


* “Banks must be reorganised to make (winding them down in
an orderly fashion if they are in trouble) possible. This is a
highly complex issue and the solution will not be simple. And
this also applies to the regulation of the size of individual
banks and of their business divisions,” the Swiss weekly
Sonntags-Zeitung quoted him as saying. [ID:nLDE60G06H]

* “We will not allow the risk of deflation to be realised in
Switzerland through such an appreciation” Hildebrand was quoted
as saying. “We do not have an exchange rate target, but we will
resolutely prevent an excessive appreciation of the franc in the
current environment,” he was quoted as saying. [ID:nLDE60G061]


* “The universal banking model represents a form of risk
diversification,” the Swiss Daily Le Temps quoted Hildebrand as
saying of big Swiss banks not splitting up their wealth
management and commercial banking operations. “The foundation of
our financial centre remains wealth management, for which
confidence is essential,” he said. [ID:nLDE60F050]


* “The SNB will continue to prevent any excessive
appreciation of the Swiss franc vs euro,” SNB chairman
Hildebrand said in a statement released to reporters. “The SNB
has no exchange rate target but it will monitor foreign exchange
market developments very closely,” he said.

For the full story, click on [ID:LDE60A0CF]

* “When this moment (of an interest rate increase) arrives,
it’s ultimately a sign that the crisis and the recession are
behind us and that we are again moving towards growth and
recovery,” Hildebrand said in a television interview.

“But one must also say, that if we were to remain at this
extremely low level of interest rates, as we are now, that would
create new problems for our economy, and we definitely don’t
want that.”

For the full story, click on [ID:WEB4625]

For the SNB statement on the latest rate decision

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FACTBOX-Recent Swiss National Bank policymaker comments