Swiss Inflation Comfortable, Contrasting with Global Central Banks

Swiss National Bank President Martin Schlegel says Switzerland is in a comfortable spot when it comes to inflation, despite major central banks elsewhere raising rates to combat soaring energy costs.

Schlegel stated that Swiss inflation forecasts are roughly in the middle of the bank's 0 to 2% target range, with prices rising 0.8% in August and expected to accelerate modestly to around 1% by October 1.

The SNB president noted that most major central banks, including the US Federal Reserve and the European Central Bank, are raising rates due to the domestic impact of higher energy prices, but Switzerland is not following suit.

Regarding speculation about UBS relocating its headquarters away from Switzerland in response to stringent new capital requirements, Schlegel said that the decision ultimately rests with the bank itself and that the relationship between UBS and Switzerland benefits both parties.