Home Economy News Swiss National Bank ready for further steps to combat inflation – Jordan

Swiss National Bank ready for further steps to combat inflation – Jordan

by

Swiss National Bank ready for further steps to combat inflation – Jordan By Reuters

Breaking News

‘;

Economy 1 hour ago (Sep 23, 2022 12:12PM ET)

(C) Reuters. FILE PHOTO: Swiss National Bank Chairman Thomas Jordan addresses a news conference in Zurich, September 22, 2022. REUTERS/Arnd Wiegmann

LUCERNE, Switzerland (Reuters) – The Swiss National Bank is ready to take further steps to fight inflation despite price rises in Switzerland being relatively modest compared to international peers, SNB Chairman Thomas Jordan said on Friday.

Swiss inflation reached 3.5% in August, its highest level in nearly 30 years, albeit much lower than the 9.1% level seen in the eurozone, 9.9% level in Britain and 8.3% rate in the United States.

The SNB responded on Thursday by hiking its policy rate to 0.5%, ending a near 8-year era of negative interest rates.

“Inflation in Switzerland is lower than abroad. However, in this country, too, it has still increased much more than was generally expected,” Jordan said in remarks prepared for an event in Lucerne.

“At 3.5%, it is at its highest level since the 1990s. It is considerably above the range the SNB equates with price stability, namely between 0% and 2% over the medium term.”

The central bank could raise rates again to combat inflation and ensure price stability, which Jordan saw as the SNB’s biggest priority.

“Ensuring price stability is a challenge and demands the full attention of the SNB,” Jordan said.

“It cannot be ruled out that further increases in the SNB policy rate will be necessary to ensure price stability over the

medium term,” he added, repeating his message from Thursday.

Economists expect the SNB to hike interest rates again in December and March 2023.

The central bank would also be active in the foreign exchange markets where necessary, Jordan said.

The SNB has said it would prevent a big fall in the value of the franc – whose strength has softened the impact of imported inflation.

Last year the SNB did not fight an appreciation of the safe-haven currency, which rose in value by 4% between autumn and spring 2002, making imports cheaper.

Further action may be needed because there was increasing signs that inflation was spreading to goods and services not affected so far by the war in Ukraine or pandemic bottlenecks, Jordan said.

Swiss National Bank ready for further steps to combat inflation – Jordan

World Bank’s Malpass says no shareholders have asked him to resignBy Reuters – Sep 23, 2022

WASHINGTON (Reuters) – World Bank President David Malpass on Friday said none of the global development bank’s shareholders have asked him to resign in the wake of criticism…

Sri Lanka aims to have $2.9 billion IMF loan finalised in December – sourcesBy Reuters – Sep 23, 2022

By Jorgelina do Rosario and Uditha Jayasinghe LONDON (Reuters) – Sri Lanka expects the International Monetary Fund board to approve a $2.9 billion loan by year-end, officials from…

ECB seeks to cut subsidy to banks as rate hikes leave it on hook, sources sayBy Reuters – Sep 23, 2022

By Francesco Canepa, Frank Siebelt and Balazs Koranyi FRANKFURT (Reuters) -The European Central Bank is studying ways of cutting a subsidy to banks that stands to cost it tens of…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News