The Swiss National Bank is watching the development of the franc and is ready to intervene

Andrea Michler, one of the bank’s directors, told the newspaper that the SNB is “closely” following the evolution of the Swiss franc’s exchange rate to monitor its impact on the economy, and remains ready to intervene when necessary. .

“At the Swiss National Bank, we are always ready to intervene in the currency markets if necessary,” Michler said during an interview with RTS’s Forum TV show.

He added, “We do not have a specific target for the exchange rate against the euro or the dollar, but we are following it closely to see the impact on the economy.”

The Swiss Franc hit a six-year high against the euro on Friday, with no indication of the SNB’s interventions in the currency that it has often made at similar times in the past.

Mischler said it was difficult for the economy to deal with sudden changes in the exchange rate, while incremental adjustments were easier to manage.

“The exchange rate is a value against a foreign currency, so it also depends on the inflation we have here in Switzerland versus the inflation abroad,” he said.

He said the SNB sees inflationary pressures in the current environment, but whether it is only temporary or not.

He said the central bank’s role is to keep the inflation gap within the SNB’s target range of 0-2% over the medium term of two to three years.

The Swiss economy was recovering and approaching pre-pandemic levels, as restrictions on social and economic life were eased. Despite this, the government recently revised its forecast for this year’s GDP, which is now expected to rise by 3.2%. Analysts at ING Group expect the economy to grow by about 3% next year.

The Swiss National Bank has decided to keep its ultra-loose monetary policy unchanged, and is expected to keep it in view of the bank’s inflation forecast for this year, which is currently at 0.5%.

This position contrasts with that of other central banks, which are considering tightening their monetary policy.