TOKYO, May 31 (Reuters) - The Swiss National Bank is unwavering in its stance of defending its currency cap against the euro, the bank’s chairman Thomas Jordan said, suggesting that any further monetary easing by the European Central Bank would not force it to alter the policy.
In an interview with the Nikkei business daily on Saturday, Jordan also said central banks must be vigilant against recent global declines in long-term interest rates, saying that prolonged low yields could sow the seeds of a future bubble.
The SNB put a cap of 1.20 per euro on the soaring franc in 2011 to help stave off the threat of deflation, and had to intervene heavily in 2012 as the euro zone crisis flared.
Markets are focusing on whether the SNB may review that policy if the European Central Bank, as widely expected, expands monetary stimulus next week and triggers a spike in the franc against the euro.
Jordan, who conducted the interview on Friday during his visit to Tokyo, said the SNB would maintain an “appropriate” monetary policy independently from policy changes of other central banks. (Reporting by Leika Kihara; Editing by Jeremy Laurence)