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SNB sees challenges from diverging monetary policies

[BERNE] The Swiss National Bank sees the anticipated divergence in policies by global rate setters as a challenge for Switzerland, SNB Chairman Thomas Jordan said on Thursday.

"Diverging monetary policy stances in the major currency areas present small open economies like Switzerland, in particular, with huge challenges as they typically trigger substantial exchange rate fluctuations and hamper economic growth," Mr Jordan told a news conference following the central bank's quarterly monetary policy decision.

"Switzerland's economy is thus going through a difficult phase." The SNB left its benchmark interest rate unchanged and said it would remain active if necessary in the currency market to weaken the "significantly overvalued" Swiss franc.