Recent inflation jump surprised Swiss National Bank, Chairman Schlegel says
TLT•Swiss National Bank Chairman Martin Schlegel said October inflation of 1.5% was higher than the bank expected. He said the bank would monitor whether price rises spread to wages and rents and would adjust policy if price stability were endangered.
1. Inflation exceeds expectations
Swiss National Bank Chairman Martin Schlegel said the recent rise in Swiss inflation surprised the central bank. Prices rose 1.5% in October, their highest level in nearly three years, with higher fuel and heating prices and increases in clothing, food and footwear contributing.
2. Bank watches for spillovers
The SNB targets annual inflation of 0-2%. Schlegel said it had not seen significant second-round effects in wages and rents so far, but could not rule them out in the future. He said the bank would not hesitate to adjust monetary policy if price stability were endangered.
3. Policy update due in December
The SNB’s policy rate is 0%, and its next policy update is scheduled for December 10.
