SNB’s Schlegel: Policy rate remains our main tool

Swiss National Bank (SNB) Chairman Martin Schlegel said the policy rate remains the central bank’s main tool during a speech titled 'Transmission and conduct of monetary policy in Switzerland' at a conference in Zurich on Thursday.

Key takeaways

SNB’s main tool is the policy rate; if necessary, it also uses other measures like forex interventions.

SNB has met the price stability goal so far this century.

Our monetary policy strategy works across a broad range of circumstances.

The Swiss Franc has relatively strong safe-haven properties compared to other currencies.

Switzerland is highly exposed to external economic shocks.

SNB doesn’t believe in using forward guidance.

We have the right tools to fight inflation in the future.

At present, we don’t see a broadening of price pressures in Switzerland.

Swiss inflation at the moment is mainly limited to fuel and energy.