Wind has changed on interest rates, SNB's Schlegel says
TLT•SNB chairman says rate expectations have shifted higher
LUCERNE, Switzerland, Sept 11 (Reuters) - Expectations have shifted towards interest rate hikes as higher energy prices have driven up inflation, Swiss National Bank Chairman Martin Schlegel said on Friday.
"The wind has changed on interest rates," Schlegel said, referring to developments in the United States and the euro area, where the European Central Bank raised rates this week.
Higher energy prices carry the risk of further price increases in other sectors and potential wage increases, Schlegel added, speaking at an event hosted by Swiss business association economiesuisse in the central city of Lucerne.
Such second-round effects have so far not been evident in Switzerland, Schlegel said, although inflation accelerated faster than expected in August, spurred by higher fuel prices.
The Swiss franc's exchange rate is a challenge for the economy, but in real terms, the currency has been broadly stable since 2020, as nominal appreciation was offset by lower inflation in Switzerland relative to other markets, he added.
