No new government action on strong franc

The Swiss government has again declined to take action to alleviate the effects of the strong franc on the economy.

This content was published on August 8, 2011 - 20:41 and agencies

But in an extraordinary cabinet meeting in Bern on Monday afternoon, the government left open the possibility of taking action in the future.

In a statement, the government said it had discussed introducing new measures aimed at ensuring that exchange rate gains were passed on to consumers in the form of lower prices on imported goods.

“These measures must be taken at the right moment and must have positive effects over the medium and long term,” the government said.

Earlier in the day, cabinet members were briefed by the Swiss National Bank president, Philipp Hildebrand, on the bank’s action last week to lower interest rates in an effort to stem the rapid in the value of the franc.

The government said it agreed with the bank’s assessment that the franc was overvalued at present and said “significant energetic intervention is necessary in the context of monetary policy”.  

The government is due to discuss the issue again when it meets next on August 17.

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