Thursday, Swiss National Bank's Vice President Philipp Hildebrand said the central bank will continue to take all measures to prevent further strengthening of the Swiss franc and reduce deflationary pressures.

A renewed appreciation of the franc carries the danger of a sustainable deflationary momentum in Switzerland. It's about avoiding deflation by all means, Hildebrand said.

Hildebrand added that the central bank is aware of the fact that the path chosen to fight this crisis is linked to long-term risks.

The SNB estimates inflation to remain close to zero in 2010 and 2011. Given the severe recession of the Swiss economy and virtually zero interest rate, the central bank's foreign-exchange interventions are a complementary emergency instrument to combat the threat of deflation.

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