SNB Chairman Schlegel: SNB policy to stoke inflation slowly in the next quarters

SNB's Inflation Policy and Market Impact

SNB Chairman Schlegel indicated that the bank's policy will aim to gradually stoke inflation over the next few quarters. He emphasized that the SNB will continue to adjust monetary policy as necessary to maintain price stability. The low-interest rate is seen effective through the exchange rate, and midterm inflation pressure remains practically unchanged since the previous quarter. Furthermore, the SNB is prepared to intervene in the currency market if needed. The current accommodative monetary policy supports growth, and Schlegel noted a slight decline in uncertainty compared to the last assessment. He expects moderate growth in the global economy over the coming quarters, while also warning of significant risks such as U.S. tariffs. The SNB downplays recent low inflation readings and anticipates that inflation will rise due to the expansionary policy and better economic growth forecasts, suggesting that investors need to be vigilant about potential shifts in the SNB's stance.