SNB Jordan: A stronger CHF has protected Switzerland from imported inflation

Swiss National Bank (SNB) Chairman Thomas Jordan is crossing the wires on Tuesday and stated the inflation in Switzerland is low in international comparison but above the price stability target of the SNB. On Monday, data showed the Consumer Price Index reached in February 3.4% YoY and the core CPI at 2.4% YoY. He explained that the appreciation of the Swiss Franc has protected them from imported inflation.

The monetary policy conducted by the SNB is still “too loose”, according to Jordan. They do not rule out more tightening.

“We are ready to sell currencies”, said the SBN Chairman. He explained that they can use interest rates and also currency intervention to get the right monetary conditions in order to achieve price stability.

Market reaction

The Swiss Franc appreciated modestly with Jordan’s comments. The USD/CHF moved off highs and trimmed losses during the last hour. The pair peaked at 0.9417 boosted by a rally of the US Dollar following Fed Chair Powell’s testimony and recently pulled back under 0.9400. EUR/CHF turned negative and fell to test daily lows around 0.9920/25.