SNB’s Jordan Warns of Inflation Risks
The SNB Chairman Thomas Jordan said Small risks to inflation to rise and we stabilise the inflation by keeping the monetary policy at the current state. Swiss Franc is weakness in the market due to selling Foreign exchange by our side, Rising inflation costs also pressure on Swiss Franc to downside risks. After the Small risks to inflation came from Jordan speech moved Swiss Franc higher against Counter pairs.
USDCHF is moving in Ascending channel and market has reached higher low area of the channel
The Swiss National Bank sees a “small upward risk” to the central bank’s inflation forecast, Chairman Thomas Jordan said on Thursday. Speaking at the Bank of Korea International Conference in Seoul, the central banker noted that there are current indications suggesting the natural rate of interest—a key factor in monetary policy decisions—has risen slightly or may continue to rise in the coming years.
Jordan stated, “We view this as a small upward risk to the inflation forecast. If this risk were to materialize, our monetary policy stance would be more accommodative than intended.” He emphasized that since inflation can vary within the bounds of price stability, the existing monetary policy would likely remain appropriate even if the natural rate of interest were somewhat higher.
Furthermore, Jordan mentioned that if these upward risks to inflation were to come to pass, it would likely be linked to a weakening Swiss franc. To counteract this potential devaluation, the SNB could intervene by selling foreign exchange.
SNB’s Jordan: Small Upward Risk to Inflation Forecast
Swiss National Bank (SNB) Chairman Thomas Jordan stated that there are small risks of inflation rising. He emphasized that the SNB aims to stabilize inflation by maintaining the current monetary policy stance. Jordan noted that the Swiss franc’s weakness in the market is partly due to the SNB’s foreign exchange sales. He also mentioned that rising inflation costs exert additional downward pressure on the Swiss franc.
EURCHF is moving in Descending channel and market has rebounded from the lower low area of the channel
Following Jordan’s remarks about these small inflationary risks, the Swiss franc appreciated against other currencies.
Swiss National Bank (SNB) Chairman Thomas Jordan stated early Thursday that there is a small upward risk to the bank’s inflation forecast.
“There are reasons to believe that the natural rate of interest has increased or may well rise,” Jordan added, indicating a potential shift in a key determinant for monetary policy decisions.
He further explained that a weaker Swiss franc is currently the most likely source of higher inflation in Switzerland. To counteract this potential inflationary pressure, the SNB could intervene by selling foreign exchange.
SNB’s Jordan Warns of Inflation Risk
SNB Chairman Thomas Jordan said there are small risks of inflation rising. To stabilize inflation, the SNB will keep the current monetary policy unchanged. The Swiss franc’s weakness in the market is due to the SNB selling foreign exchange, and rising inflation also puts downward pressure on the franc. After Jordan’s comments about inflation risks, the Swiss franc moved higher against other currencies.
GBPCHF is moving in Descending channel and market has reached lower high area of the channel
The Swiss National Bank sees a “small upward risk” to the central bank’s inflation forecast, its Chairman Thomas Jordan said on Thursday.
Speaking at the Bank of Korea International Conference in Seoul, the central banker highlighted that there are currently reasons to believe the natural rate of interest—a key indicator for monetary policy decisions—has increased somewhat or might rise over the coming years.
“We view this as a small upward risk to the inflation forecast,” Jordan stated. “If this risk were to materialize, our monetary policy stance would be more accommodative than intended.”
He explained that since inflation can fluctuate within the range of price stability, the current monetary policy would likely remain appropriate, even if the natural rate of interest were slightly higher.
Jordan also mentioned that if upward risks to inflation were to materialize, this would most likely be linked to a weaker Swiss franc. To counteract this potential devaluation, the SNB could intervene by selling foreign exchange.
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