SNB Chair Martin Schlegel warned that the Middle East conflict is injecting significant uncertainty into the global economy, with rising energy prices set to push inflation higher in the months ahead. He noted that “the higher energy prices will lead to a further increase in inflation in many countries,” while also cautioning that global growth is likely to “slow temporarily”.
Schlegel acknowledged that external shocks are beyond the control of the Swiss National Bank, stating that “the SNB cannot change the uncertain global environment.” However, he emphasized that policymakers remain focused on domestic stability and are capable of navigating these challenges.
He stressed that the SNB stands ready to act if needed, saying “we are prepared to adjust our monetary policy at any time.” Backed by institutional independence and a well-established framework, Schlegel expressed confidence that the central bank is “well equipped to ensure that we continue to fulfil our mandate”.
