Friday, Swiss National Bank's Governing Board Chairman, Jean-Pierre Roth said the central bank would continue to buy foreign currencies on the foreign exchange market to avoid further appreciation of the Swiss franc against euro and inject additional liquidity into the economy.
At the General Meeting of Shareholders of the SNB, Roth said it will continue to pursue this strategy for as long as the risk of deflation remains in the economy.
Further, he said the action to counter the rise of the Swiss franc against the euro is not a form of competitive devaluation, which would inevitably work against the interests of the nation in the long run.
Regarding economic outlook, Roth sees steepest decline in Switzerland's GDP since 1975. Though decline in GDP should gradually become less steep in the near future, a true reversal of trend is unlikely to occur before next year and recovery will be a slow process.
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