Petra Tschudin inflation comments showed medium-term price pressures are unchanged, supporting the Swiss National Bank view that the recent rise in inflation should prove temporary.
Tschudin published a report on global economic trends and monetary policy in Switzerland. She said the inflation outlook remains broadly under control, even after recent price pressure linked to energy. She also said the latest increase in inflation does not point to a lasting inflation problem.
The SNB kept its policy rate unchanged at 0.00%. However, it slightly lifted its near-term inflation forecasts after higher global energy prices. The bank now sees inflation averaging 0.6% in 2026 and 2027. It expects 2028 inflation at 0.7%.
Petra Tschudin Inflation and SNB Forecasts
Those forecasts remain within the SNB price stability range of 0% to 2%. Additionally, the bank said underlying inflation trends have stayed broadly stable. That message backed Tschudin’s view that medium-term inflation pressures have not changed.
The June policy decision also changed the bank’s language on foreign exchange intervention. In March, the SNB said its willingness to intervene in the foreign exchange market had increased. In June, it added the words “if necessary.”
Franc Demand and Policy Patience
The source article said the franc still draws safe-haven demand in times of geopolitical stress. A sharp rise in the currency could tighten financial conditions. It could also lower import prices too much and hurt Swiss export competitiveness.
For the SNB, a much stronger franc could push inflation back toward deflation. Therefore, the bank wants to avoid that outcome. Recent Swiss data also supports a wait-and-see stance.
Inflation has moved up modestly from near-zero levels earlier this year, mainly because of imported energy costs. Meanwhile, domestic price pressures remain subdued. Swiss economic growth is expected to stay modest at about 1.0% in 2026, with stronger momentum only gradually appearing in 2027.
You can access our other news on Forex markets and global market developments here.
