SNB's Jordan: Negative rates a possibility if deflation risks increase

FXStreet (Łódź) - SNB Chairman Thomas Jordan reiterated on Monday that the central bank would continue defending the franc cap at 1.20 per euro and that it was prepared to take immediate further action and implement additional measures should the need arise.

Speaking in Geneva the SNB head pointed out that the risk of inflation disappeared and a threat of deflation materialized. Negative interest rates could be introduced if deflation risks persisted, he signaled.

Moreover Jordan assured that the franc cap was very credible in the market.