Swiss National Bank (SNB) Chairman Thomas Jordan said on Friday that the bank has been able to "guide monetary policy with a steady hand" and assured that it is "well equipped to continue ensuring price stability in Switzerland in the future." He praised the SNB's flexibility, including its medium-term approach and targeting an inflation range between 0% and 2%, rather than a specific inflation rate.
Jordan said the SNB was able to bring down inflation more quickly than other European economies by hiking interest rates early on and influencing the exchange rate. He argued that, without early tightening, the interest rate "would have had to have been raised much more strongly at a later stage, with potentially negative consequences for the economy and the labor market." However, he also warned that uncertainty remains elevated and new shocks "can occur at any time" and that the SNB will continue to monitor developments and adjust its monetary policy again if necessary.
