"If developments in the international economy are worse than foreseen, or if the Swiss franc does not weaken further as expected, renewed downside risks for price stability could emerge," Jordan said. "Should the economic outlook and the threat of deflation require it, the SNB is prepared at any time to take further measures."
This is what Jordan said in April, with a bit of thinking we can see that downside risk will emerge: 1- if economy in EZ worsens, there will be a risk. 2- if it improves Euro gains and as well the CHF so CHF doesn't weaken. So in any way the SNB would have had problems with price stability and the data in recent months has proven the case. After 5 months Jordan comes with the word that "the peg is not forever and it was an extreme measure in an extreme condition." And literally I am confused and have no idea what he means.
Please help me out if you have any idea.
This is what Jordan said in April, with a bit of thinking we can see that downside risk will emerge: 1- if economy in EZ worsens, there will be a risk. 2- if it improves Euro gains and as well the CHF so CHF doesn't weaken. So in any way the SNB would have had problems with price stability and the data in recent months has proven the case. After 5 months Jordan comes with the word that "the peg is not forever and it was an extreme measure in an extreme condition." And literally I am confused and have no idea what he means.
Please help me out if you have any idea.