In the fight against inflation
SNB Vice does not rule out another blow
Economic uncertainty is also high in Switzerland. The National Bank has already raised interest rates twice. More rate hikes are likely to follow soon.
Andrea Maechler, member of the board of the Swiss National Bank SNB.
The Swiss National Bank (SNB) could raise interest rates again in December in the fight against inflation. However, the short-term economic outlook also darkened in Switzerland. As in other countries, the level of uncertainty is high.
In international comparison, inflation in Switzerland is low. Thomas Jordan, 59, head of the Swiss National Bank, still believes tighter monetary policy is necessary. He announced this at a meeting of the Federal Council.
The fight against inflation is not won
Inflation is still too high, says SNB board member Andréa Maechler (53) in an interview with business newspaper L’Agefi. Despite the drop to 3.0 percent in October, the fight against inflation is not yet won, he emphasizes. “We will declare victory if inflation falls below 2 percent permanently.”
The deputy director adds: “It cannot be ruled out that, based on new figures and developments, further increases in interest rates will be necessary to ensure price stability in the medium term.”
Not only Ukraine and the pandemic
Because: According to the deputy director of the SNB, there is increasing evidence that price increases are not limited to goods and services that are affected by the war in Ukraine or the consequences of the pandemic. “In addition, we know that electricity prices will rise quite significantly in the coming months,” explains Maechler.
The SNB has already raised interest rates twice this year. The base interest rate of the SNB is currently 0.5 percent. (pbe/SDA)