The central bank has tightened monetary policy by around 175 basis points so far this year to ward off inflationary pressure amid robust economic growth. Asked if interest rates were now near their peak, he said, "I would be very surprised if we were still far away from it. We are basically on the right path with our monetary policy. One never knows if one is steering precisely the right course." With three-month Swiss franc London Interbank Offered Rates near the middle of the SNB's target of 3 per cent to 4 percent, it had sufficient leeway to have market rates rise another 50 basis points without formally changing its policy, he noted. "So we do not see any acute need to act. But this does not rule out that we might have to set an additional accent under some circumstances." The Swiss franc was easier versus the dollar in early trading.

The dollar was quoted at 1.7205/13 francs, up from 1.7105/15 late on Thursday. The euro was little changed at 1.5473/76 francs versus 1.5474/77. Meyer also said inflation should stay below two per cent on average this year, while economic growth will slow next year but still stay at a high level. He said inflation, which should next year temporarily exceed the two percent level the SNB equates with price stability, was not an acute problem, but one the central bank would keep a close eye on. He said he thought the Swiss economy now had the potential to grow faster than the roughly 2 per cent rate at which it has traditionally expanded. But he doubted the Swiss economy could sustain real growth rates of three percent in the long run.

Meyer, who is retiring at the end of the year, refused to discuss who his successor might be. He told the newspaper that the central bank had sold 85 tonnes of gold by the middle of August under its previously announced plan to dispose of 120 tonnes by the end of September. A central bank spokesman confirmed the newspaper's report that some 200 tonnes were slated to be sold next year and referred to the figure as "a rough indication".