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Swiss government says programme to support economy "not appropriate"

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The Swiss government does not consider it appropriate to launch a programme to support Switzerland's economy and domestic demand after the central bank abandoned its currency cap last week, the economy minister said on Wednesday.

[ZURICH] The Swiss government does not consider it appropriate to launch a programme to support Switzerland's economy and domestic demand after the central bank abandoned its currency cap last week, the economy minister said on Wednesday.

The Swiss National Bank upended financial markets by scrapping a three-year-old cap on the franc, sending the currency soaring against the euro and stoking fears for Switzerland's export-driven economy.

"We should only start discussing such a programme if Switzerland were to approach a recession. This is, however, at present definitely not the case," Economy Minister Johann Schneider-Ammann told a press conference in Berne.

Mr Schneider-Ammann echoed comments by Swiss officials on Sunday, who sought to reassure the country the SNB's decision would not destabilise the economy just before the European Central Bank could announce a massive bond-buying programme.

REUTERS