SNB tightens monetary policy
Thanks to me today because we discuss an important step in our journey toward economic stability and flexibility. The Swiss National Bank has always been determined to promote the environment of monetary stability and permanent development. Today, I stand in front of you to ensure the permanent good of the economy, an important step in our financial policy.
Current economic landscape
Let’s start accepting the remarkable progress that our economy has made. Switzerland has faced various global challenges with remarkable flexibility. However, as a monetary policy stench, we must be vigilant and more thinking. In recent months, we have witnessed many factors, which have encouraged us to carefully assure our policy stance.
The pressure of inflation
One of the major factors affecting our decision is inflationary pressure. Although moderate inflation is a sign of a healthy economy, excessive prices can eliminate the power of our citizens purchasing. We have seen various types of global and domestic factors raised upwards.
Global economic movements
With the uncertainty around the challenges run by trade, geographical political tensions, and the challenges that are packed through the Coid -19 epidemic, the global economic scenario is growing rapidly. As a small, open economy, Switzerland is not protected from these external effects. Therefore, it is important that we take an active stance to navigate these uncertainty.
Monetary policy adjustment
In light of these views, the Swiss National Bank has decided to tighten its monetary policy. This adjustment includes a gradual increase in interest rates so that they can be further brought in accordance with the developed economic conditions. Our decision is based on deep analysis of the current economic indicators and the dangers and opportunities of moving forward.
The purpose of tightening the monetary policy
- Inflation control:Our main purpose is to ensure value stability. By tightening monetary policy, our aim is to maintain inflation within the boundaries of our target, promote the atmosphere of predictions and trust for businesses and consumers.
- Financial Stability:A strong and stable financial system is important for permanent economic development. Adjustment in monetary policy will help maintain the stability of our financial institutions and markets.
- Exchange Rate Idea:The exchange rate is another important element of our economic landscape. Although we recognize the importance of competitive exchange rates for our exporters, we must balance it with the need to prevent excessive volatility.
Communications and transparency
We are determined to maintain open communication and transparency in this process. When we start this monetary policy adjustment, we will provide clear and timely communication to the public, businesses and financial markets. Transparency is the basis of our point of view, and we believe that the informed stake is helpful in the effectiveness of our policies.
Finally, the decision to tighten our financial policy is not taken lightly. This is a measurement reaction to developing economic conditions and is committed to ensuring Switzerland’s long -term stability and prosperity. The Swiss National Bank is dedicated to its mandate, and we will continue to adopt our policies to advance the challenges and opportunities that are further found.