SNB affirms cap policy as voters reject gold initiative
ZURICH (Reuters) - The Swiss National Bank welcomed the rejection of a popular vote that would have forced it to buy up vast amounts of gold, adding it remained committed to enforcing its cap on the franc with the utmost determination.
The "Save our Swiss gold" initiative, proposed by the right-wing Swiss People's Party out of concern the central bank has sold too much of its gold in the past, was rejected by 77 percent of voters on Sunday.
If the vote had passed, the central bank would have had to boost its gold reserves to 20 percent from the 8 percent currently, severely complicating policy at a time when it is trying to defend a 1.20 per euro cap on the Swiss franc imposed at the height of the euro crisis.
"An acceptance of the initiative would have severely constrained the SNB in fulfilling this mandate. With conditions unchanged, the SNB can now continue pursuing its monetary policy geared towards price stability," the central bank said in a statement.
"The SNB will continue to enforce the minimum exchange rate with the utmost determination and is prepared to buy foreign currency in unlimited quantities to this end."
(Reporting by Caroline Copley)
