Swiss Central Bank Warns Of Recession Despite Successful Franc Intervention

thomas jordan

GENEVA (AP) — The vice president of the Swiss National Bank says Switzerland’s economy still risks falling into recession despite the Swiss franc falling back against the euro.

Thomas Jordan was quoted Sunday by the Zurich weekly newspaper SonntagsZeitung as saying the nation’s economy “is entering a difficult phase with a low or possibly even slightly negative growth rate.”

He told the newspaper the central bank’s move in September to put a lid on the currency’s rise by setting a target exchange rate of 1.20 Swiss francs per euro reduced the risk of recession “but that does not mean that we now have an easy situation” amid the eurozone crisis.

Before that move the euro was trading around 1.10 francs, but now is up to about 1.24 francs.

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