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It cannot be ruled out that additional rises in the policy rate will be necessary to ensure price stability over the medium term, SNB said in a release.
To provide appropriate monetary conditions, the SNB is also willing to remain active in the foreign exchange market if necessary.
Inflation has risen again since the beginning of the year. In February, it was 3.4 per cent—clearly above the range the SNB equates with price stability.
Price increases are now broad-based. Without this policy rate increase, the inflation forecast would be even higher over the medium term, the bank observed.
The forecast for Switzerland is subject to high uncertainty. In the short term, the main risks are an economic downturn abroad and adverse effects of the turmoil in the global financial sector.
Fibre2Fashion News Desk (DS)