Swiss National Bank Vice Chairman Martin Schlegel stated on Friday that he could not rule out the possibility of further tightening of monetary policy in response to increasing inflationary pressures. "We have increasing signs that inflation is spreading to other goods and services, not linked to energy and supply bottlenecks," Schlegel said at an event in Bern.
Despite the April inflation data showing a decline in consumer prices in Switzerland, Schlegel expressed uncertainty about the current situation. He emphasized that the Swiss National Bank (SNB) remains prepared to intervene in foreign exchange markets to ensure appropriate monetary conditions of inflation between 0% and 2%.
In response to the inflation crisis triggered by the conflict in Ukraine, the SNB has raised rates from negative territory to 1.5% over the past year. The next policy decision is scheduled for June 22. Swiss inflation has decreased for the second consecutive month, landing at 2.6% and returning to levels seen a year ago.
