SNB Says Franc’s Decline Has Reduced ‘Significant Overvaluation’
- Central bank rates unchanged at record low, as predicted
- SNB cuts growth forecast for 2017 to “just under” 1%
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The Swiss National Bank tweaked its formal view of the franc’s level, saying that the currency’s decline against the euro is helping curb its “significant overvaluation.”
“Since the last monetary policy assessment, the Swiss franc has weakened against the euro and appreciated against the dollar,” the central bank said in a statement on Thursday. “Overall, this development is helping to reduce, to some extent, the significant overvaluation of the currency. The Swiss franc nevertheless remains highly valued, and the situation on the foreign exchange market is still fragile.”