SNB's Zurbruegg says will keep buying FX to defend Swiss franc

GENEVA (Reuters) - The Swiss National Bank (SNB) stands ready to keep buying foreign currency and take other undisclosed measures to defend the Swiss franc, which remains highly valued, board member Fritz Zurbruegg said on Thursday.

"We remain prepared to enforce the minimum exchange rate by buying foreign currency in unlimited quantities if necessary, and to take further measures as required," Zurbruegg said in prepared remarks.

The SNB capped the franc at 1.20 per euro more than two years ago to help stave off recession and the threat of deflation. Investors fleeing turmoil in the euro zone had pushed the safe-haven currency to record highs.

Zurbruegg's remarks come three weeks ahead of the SNB's next policy meeting on Dec 12. The central bank is widely expected to stick to its policy of a currency cap and ultra-low interest rates to fend off deflation.

"Even today, the value of the Swiss franc remains high, and there are no inflation risks," Zurbruegg said on Thursday. "With interest rates at zero, the minimum exchange rate prevents an undesired tightening of monetary conditions in the event that the upward pressure on the Swiss franc should intensify once again."

On Thursday, the European Central Bank said it had nothing new to say about instituting negative deposit rates, after a media report that the central bank was actively considering the move.

(Reporting by Tom Miles. Writing by Katharina Bart and Silke Koltrowitz.; Editing by Larry King)