(Adds further comment, detail, background)
ZURICH, Feb 20 (Reuters) - The Swiss National Bank is
"still willing" to be active on the foreign currency markets in
pursuing its goal of price stability, Vice Chairman Martin
Schlegel said on Monday.
"If the Swiss franc depreciates we are ready to sell foreign
exchange, if the Swiss franc appreciates strongly we are willing
to buy foreign exchange," Schlegel told an event in Warsaw.
The SNB had to react and "react forcefully" to tackle Swiss
inflation, which peaked at 3.5% last year, Schlegel said.
Although this level was quite low by international
comparisons, it was still above the 0-2% range that the SNB
defines as price stability, he said.
"The most important contribution we can do for society is to
have stability-orientated policy and maintain price stability."
The high value of the Swiss franc had helped dampen
inflation driven by more expensive imports, Schlegel said, while
Switzerland's use of hydroelectric and nuclear power helped
reduce the effect of soaring energy prices.
Swiss prices rose by 3.3% in January, representing a year
that inflation has remained above the SNB's target range, data
showed last week.
Markets expect the SNB to raise its rates again from the
current level of 1% at its next meeting on March 23, with a
probability of 85% for a 50-basis point increase.
(Reporting by John Revill; Editing by Mark Heinrich and Alex
Richardson)
Messaging: john.revill.thomsonreuters.com@reuters.net))
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