UPDATE: SNB Chairman Schlegel has just announced a crucial strategy for the Swiss National Bank, revealing plans to gradually stoke inflation over the coming quarters. This development comes as part of the bank’s commitment to maintaining price stability amid evolving economic conditions.
During a press briefing earlier today, Schlegel emphasized that the SNB will closely monitor the economic landscape, pledging to adjust monetary policy as necessary. He stated, “We will continue to observe the situation and adjust monetary policy where necessary to keep price stability.”
The Chairman indicated that the current low-interest rate environment is effective, particularly through its influence on the exchange rate. However, he noted that midterm inflation pressure remains steady and has not changed significantly since the last quarter.
Despite a slight decline in uncertainty compared to previous assessments, Schlegel warned that considerable risks linger for the global economy, including the impact of US tariffs. He urged vigilance, stating that the bank remains prepared to intervene in the currency market if conditions warrant.
Schlegel also highlighted that the SNB’s expansive monetary policy continues to support economic growth. He anticipates a moderate growth trajectory for the global economy in the upcoming quarters, although he acknowledged that the landscape remains fraught with challenges.
The implications of this announcement are significant, affecting not only Swiss residents but also international investors and businesses engaged with the Swiss economy. As the SNB navigates these turbulent waters, stakeholders are urged to stay informed and adaptable.
The next key updates from the SNB will be closely watched as they could further impact inflation rates and economic stability both domestically and abroad. Stay tuned for more developments as this situation evolves.
This article was reported by Giuseppe Dellamotta at investinglive.com.
