Inflation spreads: SNB ready to raise interest rates further

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The Swiss National Bank (SNB) is preparing to tighten its monetary policy to combat inflationary pressures. Inflation will spread to other areas of the Swiss economy, according to the SNB. This was said on Friday by SNB Vice-President Martin Schlegel (47), Reuters reported.

“We are seeing increasing signs that inflation is spreading to energy and other goods and services unrelated to supply shortages,” the vice president said at the Asset Management Association Switzerland event in Bern, quoted by the news agency.

According to Schlegel, the SNB is ready to intervene in the foreign exchange markets, if necessary, to ensure price stability. The inflation target is between 0 and 2 percent. In April, the inflation rate was still high at 2.6 percent.

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If interest rates continue to rise, mortgage rates, for example, will continue to rise. In addition, rising interest rates negatively affect consumption in general.

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It will be that time again on June 22: The SNB will then announce the decision of the next monetary policy assessment. The main interest rate is currently 1.5 percent. (SDA/kae)

Source :Blick

Tim

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.