SNB Chairman, Thomas Jordan indicated yesterday that there might be a need to further tighten the monetary policy in Switzerland, signaling the bank’s unwavering commitment to keeping inflation in check.
“Monetary policy is still not restrictive enough to anchor inflation in the area of price stability,” Jordan said. “We cannot exclude that we have to further tighten monetary policy.”
Jordan pointedly noted, “If the inflation forecast is significantly above the area of price stability, then monetary policy is too loose.” This remark underscores the central bank’s resolve to use monetary policy levers to ensure that inflation doesn’t exceed the stability range.
The chairman’s comments come on the heels of recent data showing that annual inflation in Switzerland edged down to 2.6% in April from 2.9% in March. While these figures are modest compared to many countries grappling with double-digit inflation rates, they still exceed SNB’s traditional definition of price stability.
