SNB: We cannot rule out further tightening of monetary policy – ​​Thomas Jordan

The President of the Swiss National Bank (SNB)Thomas Jordanspeaks at a press conference after the central bank’s announcement of a 25 basis point (bp) rate hike, which raises the key rate to 1.75% in the June quarter.

Featured Statements

The sharp decline in inflation is welcome.

Our monetary policy is much more restrictive than a year ago.

Monetary tightening has strengthened the Swiss Franc, which has curbed imported inflation.

Rising rents will cause higher domestic inflation.

Even so, underlying inflationary pressure has continued to rise.

We cannot rule out further tightening of monetary policy.

There is a danger that inflation will consolidate above 2%.

Inflation caused by rising rents is not a reason to refrain from raising rates in the future.

Most likely we will have to tighten monetary policy again, but we can also take a more gradual approach.

A gradual approach to interest rate hikes is appropriate right now, we can revisit it in September.

The view that we would have better monetary policy if we did not tighten today is false.

It is clearly necessary to tighten monetary policy now, we cannot avoid the situation with higher incomes.

Market reaction

USD/CHF is trading at time of writing above 0.8940, gaining 0.10% daily.

Source: Fx Street

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