The Swiss National Bank (SNB) is prepared for potential months of negative inflation in Switzerland, but this would not trigger immediate concern, according to SNB Chairman Martin Schlegel. Speaking in Zurich, Schlegel emphasised that the SNB’s focus remains on mid-term price stability, with an inflation target range of 0-2%. The central bank expects inflation to rise over the coming months, despite the possibility of occasional negative readings.
Schlegel reiterated that short-term fluctuations would not be cause for alarm. The SNB monitors price stability over a longer timeframe. Earlier in the month, Schlegel had noted the challenges posed by low inflation coupled with the central bank’s current 0% policy rate. Recent data showed Swiss inflation at 0.1% in January, near the lower bound of the SNB’s target range.
Chairman Schlegel indicated that inflationary pressures within Switzerland have remained relatively constant. He also commented on the broader global economic landscape, noting that U.S. tariffs and related uncertainties have impacted global growth, though many sectors have demonstrated greater resilience than initially anticipated.
Regarding the impact of tariffs on Swiss businesses, Schlegel reported that approximately 25% of Swiss companies surveyed have experienced negative effects. A smaller percentage, around 10%—primarily engineering firms—reported significant negative consequences. Some companies are considering relocating manufacturing operations to countries with lower tariffs or directly to the United States, although many have not yet made definitive decisions. The Swiss National Bank aims to maintain price stability and support the Swiss economy.
