Chairman Thomas Jordan stated in a Saturday interview that the Swiss National Bank could hike interest rates to lower inflation.
Jordan maintained the central bank’s commitment to price stability, which he defined as inflation below 2% but in positive territory, in the Swiss newspaper Corriere del Ticino.
Jordan said the SNB is more conservative than most central banks, which aim for 2% inflation. “The 2% target is not a dogma or 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 fell to 2.2% in May but has been above the SNB’s 0-2% target since February 2022.
Despite a recent slowdown in Swiss price increases, economists and the market expect the SNB to raise interest rates on June 22.
Jordan stated earlier this week that he could not rule out tightening monetary policy to combat Swiss inflation.
In the newspaper interview, Jordan stated pricing stability was optimal for economic progress, social stability, and fairness.
“When inflation is above 2%, lower-income people suffer,” Jordan told the newspaper. It’s about social fairness.
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