GRONGE, May 30 | SNB Governor Jordan said that the main risk facing Swiss inflation is the weakening of the Swiss franc, and the SNB can deal with this risk by selling foreign exchange. Jordan said that a rise in the natural interest rate (r*) will also pose a risk to the inflation outlook. The central bank estimates that Switzerland's current natural interest rate is around 0%. “There is reason to believe that r* has increased, or is likely to increase in the next few years. We see this as a small upside risk to the inflation forecast.” The Swiss franc has been falling since the beginning of 2024 and recently reached its weakest level against the euro since April last year. The amount of cash held by commercial banks at the SNB has also declined for five consecutive weeks, which may indicate that the central bank is already selling foreign exchange.