Switzerland continues to suffer from high inflation. The SNB is expected to have to raise interest rates again to curb rising consumer prices, says central bank chief Thomas Jordaan.
Current monetary policy “may not be strict enough” to establish price stability, Jordan told Swiss Broadcasting Corporation SRF.
Last week, the Bank raised interest rates by a quarter of a percentage point – the fifth consecutive increase. By making borrowing more expensive, it tries to curb demand in the economy in order to curb inflation.
In contrast to Switzerland, price developments seem to be moving in the right direction in Spain. Economy Minister Nadia Calvino said on Saturday that price increases were no longer necessary. According to her, the increase in consumer prices there is tapering rapidly towards the ECB’s 2 percent target. Spain’s inflation rate is now down to around 3 percent.
Last week, the European Central Bank raised interest rates to the highest level in more than two decades. Germany’s central bank president, Joachim Nagel, said the European Central Bank may have to raise interest rates until after the summer to tackle inflation in the eurozone.
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