(Adds detail, quotes)
ZURICH, Jan 16 (Reuters) - Swiss National Bank Chairman Thomas Jordan said negative interest rates were still needed to tame the Swiss franc, which he said remained "highly valued."
"Switzerland has had a strong franc for a long time and it remains highly valued," Jordan told an event in Zurich on Tuesday.
"That's why we have low interest rates, they should work against the franc's valuation. If we were to change the interest rates, the franc would appreciate."
The Swiss franc has lost nearly nine percent in value versusthe euro last year, giving some respite to Swiss exporters hurt by the currency's surge which made their products much more expensive in their main market.
Jordan said the current negative interest rate regime, a pillar of the SNB's policy to limit the franc's strength, was needed to maintain the bank's goal of price stability.
"This means that against the background of the international situation, we have these very low interest rates or negative rates," he said.
Jordan said he could not give a forecast when a 'normal' interest rate would return.
He defended the SNB's decision to lift its cap of the franc versus the euro three years ago. Although he recognised the difficulties it caused many Swiss companies, fears of a recession or a deindustrialisation of Switzerland had not materialised.
(Reporting by John Revill and Angelika Gruber, Editing by William Maclean)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.