andrea mechlermember of the governing board of the Swiss National Bank (SNB) said in an interview published in Swiss newspaper Bilan on Monday that the central bank will not hesitate to raise interest rates if inflation remains off target.
“If the inflation that we expect does not drop to a range between 0% and 2% in the medium term, we will not hesitate to tighten policy,” Maechler said.
The headline rate of consumer inflation (CPI) rose to 2.5% in April in Switzerland, data released earlier this month has shown, above the bank’s 2.0% target range. The fact that the European Central Bank has announced that its policy rate could move to zero or positive territory this year, removes some pressure on the SNB to keep rates at their current level of -0.75%.
Source: Fx Street
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