* Jordan says weak economy reason to keep the franc
* Says sees weak growth dynamics for Switzerland in 2013
* SNB gives official 2013 growth view at Dec. 13 policy
ZURICH, Nov 22 The Swiss National Bank still
sees the 1.20 cap on the Swiss franc against the euro as
"absolutely necessary" and will not rule out further measures to
protect the still weak Swiss economy, the bank's chairman,
Thomas Jordan, said in an interview published on Thursday.
Asked whether a deteriorating economic situation in
Switzerland was a reason for the SNB to readjust the franc cap,
Jordan said: "It is above all a reason to keep the minimum
exchange rate. The weak global economy and the difficult
situation for sectors exposed to international competition
clearly show us that it is absolutely necessary to keep the
minimum exchange rate."
Jordan made the comments in an interview with Swiss daily
The SNB capped the red-hot franc at 1.20 to the euro more
than a year ago to stave off deflation and recession. The franc
cap has helped Switzerland's exporters, who are suffering
because the strong franc makes their products more expensive
Jordan also said the SNB expects Swiss economic growth to
continue to be weak next year. The central bank issues its 2013
forecast at its next regular rate-setting session on Dec. 13.
"Given the weak global development, we expect ongoing weak
dynamics in our country. The economic situation might, however,
improve a little over the course of next year," he said.
SNB board member Fritz Zurbruegg said on Wednesday the franc
cap was an extreme measure and not a cure-all for the economy.