The short-term economic outlook has darkened in Switzerland. The uncertainties are significant, just like abroad. In this tense context, the Swiss National Bank (SNB) does not rule out raising its rates again, said its president Thomas Jordan during a meeting with the Federal Council.
If Swiss inflation “remains low compared to other countries, it is nevertheless above the price stability threshold defined by the SNB” and which is between 0% and 2%. “Increasing signs indicate that price increases are affecting more goods and services that are not directly affected by the war in Ukraine or the consequences of the pandemic,” the statement said.
In this context, the SNB has raised its key interest rate twice this year. During the last monetary policy announcement in September, the issuing institution raised its key rate by 0.75 percentage point, which rose from -0.25% to +0.5%.
Since December 2021, the guarantor of price stability has also allowed the franc to appreciate against the euro in an effort to dampen inflationary pressures.
Other topics were discussed, such as the real estate and mortgage market and the distribution of SNB profits to the cantons and the Confederation, which is jeopardized by the situation on the foreign exchange and capital markets.
furr with ats