SNB Chairman Thomas Jordan said that changing the inflation target “does not seem to be the right solution for Switzerland.” He explained, “first, it is unclear to what extent inflation expectations would align easily with the new target, the benefits may be lower than expected”.
“Unless the inflation target was increased by several percentage points, the policy space would be relatively small,” he added. “Under these circumstances, unconventional policy measures would remain important.”
He also reiterated, “in order to fulfill our mandate of price stability we will continue to use unconventional policy measures like negative interest rates and foreign exchange market interventions where necessary.”
