SNB is ready to curb strong franc

The Swiss National Bank is ready to take policy measures as and when they are necessary to keep the country's inflation and economy on track, two top policymakers underlined on Wedsneday.

SNB Vice Chairman Fritz Zurbruegg said currency market interventions had become an increasingly important tool since the financial crisis and the euro zone debt crisis had pushed up the safe-haven Swiss franc.

"Since last January our monetary policy framework is based on two elements. The first is negative interest rates… and the second element, which is important to underscore, is a willingness to intervene on foreign exchange markets as necessary," Zurbruegg said at a UBS banking conference.

SNB Chairman Thomas Jordan gave the Swiss government the same message at their annual meeting to discuss the state of the export-led economy and monetary policy. "The economic situation in Switzerland's most important foreign trade partners has improved somewhat, but remains subject to considerable uncertainties," a government summary of the meeting with Jordan said.

"In particular, he pointed out that monetary policy with negative interest rates was geared to the current situation with a still markedly overvalued Swiss franc and that the National Bank is still active on the foreign exchange market if needed", as Reuters reported.