① Swiss Central Bank President Thomas Jordan said that global events continue to threaten the country's price stability; ② he pointed out that new shocks may occur at any time, and the SNB will adjust monetary policy again if necessary; ③ the SNB began cutting interest rates for the first time in March, firing the first blow among G10 central banks.
Financial Services Association, April 26 (Editor Zhou Ziyi) Swiss Bank President Thomas Jordan, who “launched the first shot in cutting interest rates,” said in his latest statement that although Switzerland's achievements in fighting inflation are obvious to all, global events continue to threaten the country's price stability.
Jordan said on Friday (4/26), “In the current environment, uncertainty is still very high, and new shocks can occur at any time. Therefore, we will closely monitor the continued development of inflation and adjust monetary policy again if necessary.”
Consumption prospects are uncertain
The SNB began cutting interest rates for the first time in March, ahead of the G10 central bank, lowering the benchmark interest rate from 1.75% to 1.5%, and is expected to cut interest rates twice more in June and September.
Jordan also warned at the meeting that the current favorable consumer price outlook “cannot be guaranteed” to continue, that new shocks “may occur at any time,” and that the SNB will adjust its monetary policy again if necessary.
After being in charge of the SNB for more than 12 years, Jordan will leave the SNB at the end of September this year, and Vice President Martin Schlegel is the most likely successor. As a result, Jordan may be able to avoid a challenge about a potential rebound in inflation.
Meanwhile, the prospect of a senior change in the SNB prompted some critics to call for reforms in the way the institution operates.
These critics accuse the SNB of lacking diversity and ignoring climate issues. They also believe that the central bank's interest rate setting committee is too small. In response, they hoped that the bank would seek a successor to the governor from outside to replace the current governor, Jordan.
In response, SNB Supervisory Board Chairman Barbara Janom Steiner supported the SNB at the meeting, saying that the bank has done an excellent job in maintaining price stability, and lashed out at the SNB's critics' demands.
Janom Steiner also said that the SNB should not be distracted by other issues raised by critics, which could hinder its efforts to control inflation.