SNB President Says Inflation will Decrease Next Year

The transcript covers discussions on the Swiss average rate overnight, its comparison with the SME policy area, and the instruments available to control it. It addresses global and Swiss inflation trends, emphasizing the transitory nature of inflation and the expected narrowing of inflation differentials. The valuation of the Swiss franc is analyzed, highlighting its high value and the potential need for intervention. Finally, concerns about the booming residential property market in Switzerland are discussed, including the possibility of reactivating the countercyclical capital buffer for banks.

What is the main concern regarding the Swiss average rate overnight?

• It is significantly lower than the SME policy area.

• It is slightly higher than the SME policy area.

• It is not a concern as it is well below the policy rate.

• It is exactly the same as the SME policy area.

What is the speaker's stance on the current monetary policy?

• It needs immediate revision.

• It is appropriate and expansionary.

• It is not aligned with global trends.

• It is too restrictive.

What is the expected trend for Swiss inflation in the coming quarters?

• It is expected to decrease to around 1% or below.

• It is expected to rise significantly.

• It is expected to increase to 2%.

• It is expected to remain stable at 1.5%.

Why is the Swiss franc considered highly valued?

• Due to its stable exchange rate.

• Because it is undervalued compared to the euro.

• Because of its nominal appreciation and inflation differentials.

• Due to its nominal depreciation.

What is the main reason for monitoring the Swiss franc closely?

• To increase its value against the dollar.

• To avoid negative inflation in Switzerland.

• To ensure it becomes stronger.

• To prevent it from becoming too weak.

What has been the trend in the Swiss residential property market during the pandemic?

• House prices have fluctuated without a clear trend.

• House prices have remained stable.

• House prices have decreased significantly.

• House prices have increased despite the recession.

What is the purpose of the countercyclical capital buffer for banks?

• To absorb potential losses in the housing market.

• To reduce bank lending.

• To decrease house prices.

• To increase bank profits.