Swiss National Bank President: Inflation outlook has considerable uncertainty

ME News Report, April 16 (UTC+8), Swiss National Bank President Jordan Basel said on Wednesday local time that the uncertainty about Switzerland’s inflation outlook is “quite high,” and close attention should be paid to whether the impact of the Middle East conflict triggers a second-round effect on inflation. Basel stated that the rise in energy costs caused by the Middle East conflict is very likely a supply shock. “But we must observe the second-round effects very closely, and if we see signs of the second-round effects and inflation becomes too high, central banks around the world should act early and decisively,” Basel said. Basel reviewed the Swiss National Bank’s latest monetary policy decision in March, when the bank kept the benchmark interest rate at zero and slightly raised this year’s inflation forecast to 0.5%. He also pointed out that the latest forecast from the Swiss National Bank shows that inflation will remain within the target range of 0% to 2% until 2028. “But clearly, there is considerable uncertainty about this inflation forecast at present. Therefore, given the Middle East conflict, our willingness to intervene in the foreign exchange market has increased,” Basel stated. (Source: ODAILY)