Tuesday, May 18, 2010
Monday, May 17 Swiss National Bank's Governor Philipp Hildebrand said that euro-zone debt crisis may reflect of economic recovery of Switzerland. Hildebrand mentioned that now price stability is at risk as appreciation of Swiss franc is exaggerated. All time minimum was hit on Monday, when EUR/CHF currency pair dropped to 1,4000 level, unseen previously. On Forex today the pair is in a tight range near 1,4000.
Philipp Hildebrand emphasized the necessity of making European policy stable. The SNB is trying to limit franc`s rise versus the euro. It intervened several times.
In his speech Hildebrand also focused on future of banking industry in the country. He mentioned the situation over UBS and Credit Suisse. The Swiss government decided to bail out UBS bank. According to SNB chief, large banks' investment banking had been a loss-making business for the country.