SNB: Inflation Likely to Remain Elevated Amid Ongoing Global Growth
Swiss National Bank Vice Chairman Antoine Martin addressed the press after the central bank's monetary policy assessment in September. The SNB held interest rates unchanged at 0%. Martin emphasized that global economic growth was stronger than expected in the second quarter and anticipated moderate growth over the coming quarters.
The vice chairman noted that consumer spending barely slowed despite a loss of purchasing power, while ongoing improvement in manufacturing momentum will support growth. However, there is uncertainty regarding energy prices, which could turn out to be significantly higher than expected due to the situation in the Middle East.
Martin warned that inflation is likely to remain elevated for some time. The Swiss Franc (CHF) was losing ground against the US Dollar (USD) at the press conference, with USD/CHF trading 0.28% higher on the day at 0.8270.