Swiss central bank chairman resumes duties after health scare
Swiss central bank chairman, Thomas Jordan, has returned from minor heart surgery to announce that interest rates will remain unchanged, despite increased inflation fears.
The Swiss National Bank (SNB) said on Thursday it would keep interest rates in negative territory at -0.75% for the coming months. This policy is designed to stop the Swiss franc from gaining in value too much against other currencies.
The SNB has raised its Swiss inflation forecasts slightly from its previous statement in June. If interest rates remain the same, the central bank now expects to see 0.5% inflation in Switzerland this year (0.4% was forecast in June) and 0.7% in 2002 (0.6% forecast in June).
The upgraded inflation predictions are “primarily due to somewhat higher prices for oil products as well as for goods affected by supply bottlenecks,” the SNB statedExternal link. “In the longer term, the inflation forecast is virtually unchanged compared with June.”
The Organisation for Economic Co-operation and Development (OECD) this week warnedExternal link that the rising costs for raw materials, energy and transporting goods would push global inflation rates up higher than previously expected this year.
But the SNB also sees weakening consumer demand and a slight dip in the rate of economic recovery in Switzerland.
Speaking about his own health, Jordan said on Thursday that he is now fully recovered and able to resume full responsibilities at the central bank.
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