SZ SNB Chairman Jordan Speaks

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post: SWISS NATIONAL BANK'S JORDAN: REASONS TO BELIEVE THE NATURAL RATE OF INTEREST HAS INCREASED OR MIGHT RISEJordan: The natural rate of interest (r*) as a reference point for monetary policy - a practitioner's view Ladies and gentlemen I am delighted to be here today in Seoul to address such a distinguished audience. I would like to thank Governor Rhee for inviting me to give this keynote speech. The topic of this year’s Bank of Korea International Conference – ‘The Evolution of the Natural Interest Rate and Its Implications for the Global Economy’ – could not have come at a better time. Monetary tightening over the past two years has lifted policy rates and longerterm interest rates from their historical lows. There are reasons to believe that some of the structural drivers of real interest rates have also changed direction in recent years. A lively debate has emerged on whether real interest rates will return to their pre-pandemic levels, or whether they will remain higher because the natural rate of interest, r*, has increased.1 Over the past years, r* has become an important reference point for monetary policy. The difference between the real interest rate and r* gives a measure of a central bank’s monetary policy stance. Therefore, r* estimates help in evaluating different monetary policy options. However, the measurement of r* is subject to high uncertainty. Today I would like to focus mainly on how policymakers can nevertheless make use of r* estimates in practice. In the first part of my remarks, I will briefly review the developments in real interest rates over the past decades. I will then turn to the concept of r* itself. In the second part, I will discuss how policymakers can use r* in practice to assess the monetary policy stance, and in particular, how they can deal with the inherent uncertainty in r* estimates. Here I will draw especially on the Swiss National Bank’s experience.

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Let me thank the BIS for the opportunity to present and discuss Project Helvetia III. It is a great pleasure to give you some insights into this pilot project of the Swiss National Bank. The pilot represents the world’s first issuance of a wholesale CBDC on a regulated third-party platform to settle commercial transactions with tokenised assets. Helvetia III is a good example of how learnings from BIS Innovation Hub projects can be leveraged for real world use. We started this work together with the Hub’s Swiss Centre and the private ...

I am delighted to see you here today at the SNB’s General Meeting of Shareholders. A warm welcome to you all. This is already my thirteenth General Meeting as Chairman of the Governing Board, and also my last. It is therefore a particular honour and pleasure for me to be able to speak to you again here one more time. ‘The spectre of inflation is back’ – this was the sort of headline that was commonplace in the media from mid-2021 onwards, both in Switzerland and abroad. After years when it had been exceptionally low, inflation ...

Ladies and Gentlemen It is my great pleasure to welcome you to our conference. The aim of today’s discussion is to map out the journey towards the future monetary system. Thank you all for taking the time to join us in this endeavour. The financial system is undergoing rapid technological change. Central banks around the world are investigating how to harness the potential of new technologies while maintaining monetary and financial stability. We recently launched Helvetia III, a pilot project featuring the issuance of Swiss franc ...