SNB Chairman Vows to Monitor Situation, Adjust Policy if Necessary Amid Weakening Franc
Swiss National Bank Chairman Martin Schlegel spoke at a press conference following the June monetary policy assessment, where he explained why interest rates remain unchanged at 0%. According to Schlegel, Swiss inflation rose slightly recently due to goods price inflation driven by higher oil prices. However, the bank's medium-term inflation forecast is slightly higher, partly reflecting the weakening of the Swiss Franc.
The SNB Chairman emphasized that energy inflation is likely to decline in coming quarters and that inflation will continue to rise in Q4 before declining in 2027. Schlegel also stated that the bank is willing to intervene in the forex market as necessary to maintain price stability, despite the Swiss Franc's recent depreciation.
The SNB aims to keep inflation within a target range of 0%-2%, and currently, Swiss inflation stands at 0.8%. This rate is considered low by international standards. Schlegel highlighted that uncertainty remains high, and the bank will continue to monitor the situation and adjust policy if necessary.