SZ SNB Chairman Schlegel Speaks

SNB's Chairman Schlegel: We are at 0% rates, the bar to go into negative territory is high, but if necessary, we would do it.

SNB's Chairman Schlegel: We're ready to intervene in the FX market if needed. SNB's Chairman Schlegel: The medium-term inflation pressure is almost unchanged.

The world is going through a period of great uncertainty. As a central bank, we have to accept this as it is - and deal with the uncertainty. The past 25 years have seen several phases of great uncertainty. Nevertheless, the SNB has achieved its objective of price stability. The Swiss economy has also developed favourably overall. We were able to do so because three prerequisites for our work were met. The first is our institutional framework and, in particular, the independence of the SNB. Independence means that in conducting our monetary policy, we must not take instructions from the government, parliament or anybody else. Legislators gave us this independence for good reason, because an independent central bank is best able to fulfil its mandate. The counterbalance to independence is accountability, and the SNB reports comprehensively on how it fulfils its tasks. The second is our monetary policy strategy, which defines our long-term frame of reference. Our definition of price stability and the conditional inflation forecast form the core of this strategy. The conditional inflation forecast is our main indicator for monetary policy. It tells us whether price stability is being met in the medium term, and shows whether there will be a need for action in the future. It is therefore at the heart of our communications. Third, the contribution made by our employees is also central to the success of our monetary policy. Every day, they put SNB Chairman: We have unrestricted room to manoeuvre on policy rate, Forex interventions.

SNB'S SCHLEGEL: TOO SOON TO DETERMINE IF 2021-22 SITUATION WILL RECUR; READINESS TO INTERVENE IN FX MARKET HAS GROWN Just in | SNB's Schlegel emphasizes the need for central banks to respond swiftly and decisively to potential second-round effects in the current economic climate. SNB's Schlegel: Currency can be a shock absorber for inflation.

SNB’s Schlegel: We Are Prepared To Introduce Negative Rates, But The Hurdle To Lower Rates Into Negative Area Is Higher - Interest Rate Differential Is An Important Driver Of The Exchange Rate

SNB's Chairman Schlegel: SNB's readiness to intervene in the FX market is elevated. SNB's Chairman Schlegel: Conflict in the Middle East can increase the appreciation pressure on the franc.

SNB'S CHAIRMAN SCHLEGEL: THE SNB IS READY TO INTERVENE ON CURRENCY MARKETS WHERE NECESSARY. ...

SNB'S CHAIRMAN SCHLEGEL: SWISS INFLATIONARY PRESSURE HAS BARELY CHANGED. ... SNB's Chairman Schlegel: The mid-term course of inflation is important for us. SNB's Chairman Schlegel: I expect inflation to accelerate in the coming quarters.