UPDATE 1-SNB aware of risks of low interest rates-Jordan
* Low interest rates pose risks for financial stability
* Also put price stability at risk
* Does not indicate when SNB will exit ultra-loose strategy
(Adds details)
ZURICH, Nov 10 (Reuters) - Historically low interest rates hold risks for both financial and price stability in the mid-term, Swiss National Bank board member Thomas Jordan cautioned on Tuesday.
"The SNB is aware that the historically low interest rates contain risks for financial stability in the medium term," Jordan said in the text of a speech he was due to give at a real estate congress in Zurich.
Jordan did not give any signal as to when the central bank may exit its ultra-loose monetary policy in the speech, but earlier this month he said that the time for an end to this stance had not yet come. [ID:nL2458774]
The SNB took a number of extraordinary measures to soften the impact of the worst economic downturn in decades on the Swiss economy, which is particularly vulnerable to weaker demand from abroad due to its dependence on exports.
The central bank cut its target for the 3-month Swiss franc LIBOR to 0.25 percent, offering cash in its daily operations at rates close to zero and bought corporate Swiss franc bonds. Continued...
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