The Swiss National Bank could reduce its already ultra-low interest rates again if the situation warrants, President Thomas Jordan said.

With a deposit rate of minus 0.75 percent, the SNB has already enacted the lowest interest rate of any major central bank. That tool is designed to keep pressure off the franc. Still, the Swiss currency hit a 20-month high against the euro at the end of March, and a no-deal Brexit or political turmoil in Italy could intensify appreciation pressure.

“We always stress the point that we have room to lower interest rates still further” and intervene in foreign exchange markets, Jordan said. “So we have the policy space to use both instruments but of course they have to be a reaction to the economic situation.”

Switzerland is expected to expand about 1.5 percent this year, a forecast Jordan confirmed. “Both instruments are highly effective at this moment and they will remain key parameters of our monetary policy for the time being,” he said.