The Swiss National Bank (SNB) is to maintain its policy of negative interest rates and penalties for holding Swiss francs in cash.

The central bank says it will remain active in currency markets to keep the “significantly overvalued” franc down with foreign exchange valuations.

The fate of the franc is closely linked to the Greek crisis. A failure by Greece to reach a reforms-for-cash deal with its creditors would spark safe-haven flows into the Swiss currency.

On Tuesday the government trimmed its economic forecasts for this year and next, flagging the strong franc, which has already cost hundreds of job losses in Switzerland.