Thomas Jordan, the chairman of the Swiss National Bank's Governing Board, said on Thursday that the central bank welcomes the fact that its monetary tightening has led to a "marked decline" in inflation.
Moves the SNB had made have also "strengthened the Swiss franc and thus dampened imported inflation," he noted in a speech following the latest interest rate decision by the central bank.
However, Jordan warned that "the underlying inflationary pressure has risen further," adding that second-round effects in domestic goods and services and an increase in rents could pose upside risks to inflation.