SNB Schlegel reiterates commitment to price stability and willingness to intervene

SNB Vice Chairman Martin Schlegel emphasized the central bank’s commitment to price stability in an interview with Swiss broadcaster SRF yesterday. He stated, “Our mandate is crystal clear, and that is price stability,” adding that SNB will do everything possible to bring inflation back to the target range of 0 to 2%.

Although Schlegel refrained from making any forecasts, he noted that SNB’s inflation forecasts are higher now than they were in December, adding that the central bank is prepared to “continue to raise interest rates” if necessary.

Schlegel also addressed SNB’s willingness to sell foreign currencies in order to strengthen Swiss franc. He said, “We said quite clearly at the last assessment that we are also prepared to sell foreign currencies, to actually strengthen the franc.”

He revealed that SNB had already sold CHF 27B worth of foreign currencies in the last quarter, asserting that the bank will continue to monitor the exchange rate and intervene if necessary.