Swiss National Bank Chairman hints at rate rises to tackle inflation

Zurich, June 10 (BNA) Swiss National Bank President Thomas Jordan said in an interview published on Saturday that the Swiss National Bank may raise interest rates to counter inflation, which is still above the target.

Jordan defended the central bank’s commitment to price stability, which it described as inflation below 2% but in positive territory, in an article published by the Swiss newspaper Corriere del Ticino, as reported by Reuters.

“Most central banks have an inflation target of around 2% and the Swiss National Bank is a bit more conservative,” Jordan said. The 2% goal is not a dogma, nor the will of a particular interest group.

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

Government data on Monday showed that Swiss annual inflation fell to 2.2% in May, but remained above the 0-2% range the Swiss central bank has targeted since February 2022.

Despite the recent decline in price hikes in Switzerland, it is expected by analysts and the market that the Swiss National Bank will raise interest rates at its meeting on June 22nd.

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

Jordan said in an interview with the newspaper that price stability created the best environment for economic growth, and was important for social stability and justice.

“When inflation is above 2%, low-income people suffer particularly,” Jordan told the newspaper. “It is therefore a matter of social justice.”

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