SNB Chairman Thomas Jordan, in his overnight address at an event, acknowledged the impact of the Franc’s nominal appreciation on lowering inflation. However, he warned, the “Franc has also appreciated in real terms in 2023. And that hurts, companies feel that.”
Despite the challenges posed by Franc’s appreciation, Jordan expressed confidence in the Swiss economy’s resilience. “Economists are confident that there won’t be a recession — and we are also confident, otherwise we would forecast one,” he commented, adding “So no recession, just weak growth.”
Looking ahead, Jordan reiterated SNB’s inflation expectations, stating that they anticipate Swiss inflation to approach but not exceed the 2% ceiling of their target range this year. The central bank does not foresee inflation breaching this mark until 2026.
