⚠ SNB CHAIRMAN: EXCHANGE RATE MAKES SITUATION DIFFICULT FOR SWISS INDUSTRY ALREADY DEALING WITH WEAK DEMAND IN EUROPE
⚠ SNB CHAIRMAN: THE MAIN INSTRUMENT FOR SNB IS INTEREST RATES, BUT CAN ALSO CARRY OUT CURRENCY MARKET INTERVENTIONS
SNB'S CHAIRMAN JORDAN: THE MAIN INSTRUMENT FOR THE SNB IS INTEREST RATES, BUT WE CAN ALSO CARRY OUT CURRENCY MARKET INTERVENTIONS.
Swiss National Bank (SNB) Chairman Thomas Jordan emphasized the importance of price stability as a fundamental requirement for growth and prosperity during recent statements. He noted that the SNB's primary tool for managing economic conditions is interest rates, though the bank is also prepared to intervene in currency markets if necessary. Jordan highlighted that the weak euro area is negatively impacting demand for Swiss exports, complicating the situation for Swiss industries already facing challenges. He affirmed that the SNB reacted promptly to the recent rise in inflation, which has helped keep inflation under control. Additionally, he pointed out that a stronger yen could reduce yen-denominated profits for Japanese exporters, indirectly affecting the broader economic landscape.
