The SNB is not alarmed by recent soft inflation data, according to Chairman Martin Schlegel. He said inflation is expected to pick up, but the SNB is prepared to tolerate temporary negative readings, provided medium-term price stability remains intact.
“If we have some negative prints this year, for example, this is not a problem with the Swiss National Bank, because we look at the medium-term price stability,” he added.
He also pointed to recent global political turbulence as a driver of Swiss Franc appreciation, reflecting its traditional safe-haven role. On reserve management, Schlegel declined to comment directly on whether the exchange-rate move would lead to changes in Dollar holdings, but reiterated the SNB’s commitment to diversification across currencies and asset classes, noting the bank continuously reviews its “investment universe” and stands ready to act if needed.
