For the Swiss economy SNB Chairman sees increased uncertainty
According to SNB Chairman Martin Schlegel, the conflict in the Middle East is also having an impact on Switzerland. Uncertainty regarding the development of the Swiss economy and inflation has "increased significantly".
24.04.2026, 10:14
24.04.2026, 10:48
SDA
The conflict in the Middle East makes the global economic situation "very uncertain" and the rise in energy prices will further increase inflation in many countries in the coming months, Schlegel explained on Friday at the General Meeting of the Swiss National Bank (SNB). "Global growth is likely to slow down temporarily."
According to Schlegel, growth in Switzerland could be "rather subdued in the short term", even if the SNB expects a certain recovery in the medium term. In the coming quarters, higher energy prices will also continue to push up inflation in Switzerland.
Increased willingness
The upward pressure on the Swiss currency increased at the beginning of the year and with the escalation in the Middle East, said Schlegel. "In uncertain times, the franc is sought as a safe haven."
The SNB is therefore constantly monitoring the situation. "And if necessary, we will adjust our monetary policy." Such an adjustment is made when monetary conditions are no longer appropriate and price stability would be jeopardized without an adjustment. "Then we will not hesitate to act."
Schlegel emphasized that the SNB has "full room for manoeuvre" with regard to both the SNB policy rate and foreign exchange market interventions. "Our willingness to intervene in the foreign exchange market is increased due to the conflict in the Middle East." This would enable the SNB to counteract a "rapid and excessive" appreciation of the Swiss franc.
Monetary policy has an expansionary effect
Last year, the SNB lowered the key interest rate to zero in two steps and did not adjust it again at the last three monetary policy assessments, Schlegel recalled. The SNB's monetary policy is currently having an expansionary effect. The low interest rates primarily have an effect via loans and the exchange rate. "They make loans cheaper, encourage investment and thus support economic development."
This is also reflected in the data: Loan growth has increased over the last year. And in terms of the exchange rate, the low interest rates compared to other countries made the Swiss franc less attractive. However, the aim of the SNB's monetary policy is always price stability - taking the economy into account, emphasized Schlegel.
Stability becomes valuable
In her speech to SNB shareholders, Barbara Janom Steiner, President of the Bank Council, also referred to the increased uncertainty in view of current world events. "We live in a new Western world, a world in which values are changing significantly." In this world, the rule of law, freedom of expression, democratic achievements and international organizations and alliances of states are being called into question.
In such an environment, stability becomes a particularly valuable asset, said the President of the Bank Council. This is precisely what the National Bank has always stood for. "Especially when markets come under pressure, inflation rises or global crises create uncertainty, it becomes clear how important a prudent and independent central bank is."
The SNB's stability-oriented monetary policy is the result of clear principles: "institutional independence, professional expertise and a consistent focus on the legal mandate". The SNB deliberately avoids short-term political influences. "This is precisely what makes it a reliable point of reference in an often turbulent environment."
