SNB President on FX Intervention, Inflation

The transcript discusses Swiss monetary policy, focusing on low interest rates and currency appreciation to manage inflation. It highlights the Swiss franc's role in maintaining low inflation compared to other regions. The discussion covers inflation expectations, potential risks, and the impact of global events like the Ukraine war. Secondary inflationary risks and wage pressures are also addressed. The transcript concludes with a discussion on the impact of Russian assets on Switzerland's financial stability and reputational risks.

What is one reason Switzerland maintains low interest rates?

• To control the appreciation of the Swiss franc

• To keep inflation lower than in other regions

• To align with the eurozone's monetary policy

• To encourage foreign investment

How does the Swiss National Bank view the relationship between the Swiss franc and the euro?

• As irrelevant to their economic strategy

• As one of several important currency relationships

• As the sole focus of their monetary policy

• As a minor consideration compared to the US dollar

Why is the Swiss franc allowed to appreciate according to the Swiss National Bank?

• To attract foreign tourists

• To align with the US dollar

• To increase exports

• To match the inflation differential

What is a key factor in Switzerland's inflation expectations for the coming years?

• The growth of the Swiss economy

• The stability of energy prices

• The level of foreign investment in Switzerland

• The policies of the European Central Bank

What is a potential consequence of prolonged elevated inflation?

• Stronger economic growth

• Deflationary pressures

• A wage-price spiral

• Increased foreign investment

What is the Swiss National Bank's stance on the risk posed by Russian assets in Switzerland?

• They consider it a minor financial risk

• They believe it poses a significant reputational risk

• They are indifferent to the presence of Russian assets

• They see it as a major financial risk

What is one measure to avoid a wage-price spiral?

• Encouraging wage freezes

• Ensuring central banks guarantee medium-term price stability

• Increasing interest rates

• Reducing government spending