equitieswatch
Monday, January 23, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Swiss National Bank chairman sees inflation rise as temporary By Reuters

by equitieswatch
April 20, 2022
in Stock Market

YOU MAY ALSO LIKE

Mexico’s new airport gets boost from Panama’s Copa Airlines By Reuters

Honda and Sony Team Up to Tackle Tesla


© Reuters. FILE PHOTO: The Swiss National Bank (SNB) logo is pictured on its building in Bern, Switzerland April 2, 2022. REUTERS/Arnd Wiegmann

By John Revill

ZURICH (Reuters) – The Swiss National Bank sees the current increase in inflation as a temporary phenomenon, Chairman Thomas Jordan said on Tuesday, although the central bank would keep a close eye on the situation.

Central banks including the U.S. Federal Reserve and the Bank of England have started raising interest rates to fight higher prices, although the SNB has so far not raised its policy rate, the world’s lowest at minus 0.75%.

This has been despite Swiss prices rising by 2.4% in March, compared with a year earlier, its highest level in years as higher energy costs and supply shortages pushed up prices.

“Personally I believe a substantial amount of the inflation today may be temporary,” he told an event in Washington. “But nevertheless there is a relatively big risk that some of this temporary inflation feeds into permanent inflation where all goods and services are impacted,” he added

If high inflation became entrenched, central banks needed to adjust their monetary policy to ensure they did not lose credibility in their campaign to maintain price stability, Jordan said.

If central banks got their calculations wrong, there was a risk of there being too much inflation or an unnecessary tightening of policy, he added.

The SNB preferred to use interest rates to steer inflation, but also remained committed to using foreign currency purchases, Jordan said.

“We do not really have a intermediate target for the exchange rate, but of course we take the exchange rate into account and we are using interventions when we believe the exchange rate is too strong and… bringing inflation into negative territory.”

Higher interest rates in other countries would also help the SNB, Jordan added, by giving it more room to maneuver with its own interest rates.

“As soon as the situation changes we are more than happy to go back to a more traditional implementation of monetary policy where intervention don’t have the same importance as today,” Jordan said.

(This story refiles to remove extraneous word in paragraph five)

Source link

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com