There is no reason now for the Swiss central bank to try to fight the strong franc, the Swiss finance minister was quoted as saying on Sunday, even as the government plans to discuss the impact of the currency on Wednesday.
"The central bank did what it had to and could do with its interventions last year. It should also do that in future, according to its mandate," Eveline Widmer-Schlumpf told the SonntagsZeitung newspaper in an interview.
"But at the moment I don't see any need to act. That would only be the case if we were confronted by deflation." Citing several independent sources, the newspaper said the cabinet would discuss the strong franc at its regular meeting on Wednesday.
But Widmer-Schlumpf dismissed the idea of tying the franc to the euro and also rejected labour market measures for now, although it was worth preparing them in case they are needed in future.
She dismissed a "gentleman's agreement" with the big Swiss banks to stop speculating in favour of a strong franc, although she said it could not hurt if they agreed on a certain amount of restraint. On Friday, a crisis meeting of Swiss government, business, bank and trade union representatives agreed that moves to counter the franc's strength should be left to the central bank despite the risks posed to the Swiss economy.