👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Swiss National Bank Chairman hints at rate rises to tackle inflation

Published 06/10/2023, 12:06 AM
Updated 06/10/2023, 12:10 AM
© Reuters. FILE PHOTO: Swiss National Bank Chairman Thomas Jordan attends the shareholders meeting of SNB in Bern, Switzerland, April 28, 2023. REUTERS/Denis Balibouse

ZURICH (Reuters) - The Swiss National Bank could raise interest rates to tackle inflation which remains above target, Chairman Thomas Jordan said in an interview published on Saturday,

Jordan defended the central bank's commitment to price stability, which he defined as inflation below 2% but in positive territory, in the article in Swiss newspaper Corriere del Ticino.

"Most central banks have an inflation target of about 2%, the SNB is slightly more conservative," Jordan said. "The 2% target is not a dogma, nor the will of a particular interest group.

"Of course if inflation is higher than the target, monetary policy must be restrictive," Jordan told the newspaper.

Swiss annual inflation dipped to 2.2% in May, government data showed on Monday, but has remained above the 0-2% range targeted by the SNB since February 2022.

Despite a recent easing in price rises in Switzerland, the SNB is expected by analysts and the market to raise interest rates at its meeting on June 22.

Earlier this week Jordan in a separate public appearance, said he could not rule out tightening monetary policy to tackle stubborn Swiss inflation.

© Reuters. FILE PHOTO: Swiss National Bank Chairman Thomas Jordan attends the shareholders meeting of SNB in Bern, Switzerland, April 28, 2023. REUTERS/Denis Balibouse

In the newspaper interview Jordan said price stability created the best environment for economic growth, and was important for social stability and fairness.

"When inflation is above 2%, people with lower incomes especially suffer," Jordan told the newspaper. "It is therefore a matter of social justice."

Latest comments

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.