(Bloomberg) -- The Swiss franc fell against the euro after central bank Vice-Chairman Philipp Hildebrand said policy makers would continue to limit gains for the currency.

The Swiss National Bank will “resolutely” prevent an appreciation of the franc as long as the risk of deflation persists, Bilanz reported, citing an interview with Hildebrand. The Zurich-based SNB said on April 21 it raised its euro holdings by almost 30 percent in the first quarter.

“Prospects of intervention are pretty high whenever the SNB policy makers talk,” said Martin McMahon, currency strategist at Credit Suisse Group AG, the largest Swiss bank by market value. “There will be more verbal intervention from time to time and the question is ‘when will it be accompanied by actual intervention?’”

The franc fell 0.2 percent to 1.5159 per euro at 11:20 a.m. in Zurich, from 1.5133 yesterday. It slipped gained 0.3 percent to 1.1602 against the dollar, from 1.1636.

Switzerland’s currency lost about 2.4 percent against the euro since March 11, the day before the central bank announced it would act to weaken the franc. SNB Chairman Jean-Pierre Roth said last week it will extend the currency purchases as long as necessary to prevent an appreciation of the franc and ward off deflation.

To contact the reporter on this story: Anna Rascouet in London arascouet@bloomberg.net.