Tuesday, September 26, 2023
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SNB chief hints at rate hikes to tackle inflation

ZURICH (Reuters) – The SNB may raise interest rates in response to inflation remaining above target, Swiss National Bank Chairman Thomas Jordan said in an interview published on Saturday,

Jordan Defending the central bank’s policy In an article for the Swiss newspaper Corriere del Ticino, he defined price stability as inflation below 2% but in positive territory.

“Most central banks target inflation around 2 percent, with the SNB being a little more conservative,” Jordan said. “The 2% target is not a dogma, nor is it the will of a particular interest group.

“Of course, if inflation is above target, monetary policy must be tight,” Jordan told the newspaper.

Swiss annual inflation fell to 2.2% in May, but has been above the SNB’s 0-2% target range since February, government data showed on Monday 22 .

Analysts and markets expect the SNB to raise interest rates at its June meeting 22 despite a recent slowdown in Swiss price growth.

Earlier this week, Jordan made a solitary public appearance saying he would not rule out tightening monetary policy to tackle stubborn Swiss inflation.

Stable prices create the best environment for economic growth and are important for social stability and fairness, Jordan said in a newspaper interview.

“When inflation exceeds 2%, low-income groups suffer especially ,” Jordan told the paper. “So, it’s a social justice issue.



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