Zürich – Swiss National Bank (SNB) Chairman Martin Schlegel stated that the global economic outlook remains moderate, despite the impact of U.S. Tariffs and geopolitical instability on the economic growth of Switzerland’s trading partners. Speaking at the ECONnect event in Zürich on Tuesday evening, Schlegel noted that many economies have proven more resilient than initially anticipated, according to prepared remarks.
Schlegel indicated that Swiss economic growth was subdued in the past year, significantly influenced by fluctuations within the pharmaceutical industry. He specifically cited the impact of U.S. Trade policy under President Donald Trump on the export performance of Swiss pharmaceutical companies. According to Schlegel, the strong Swiss franc too played a role in the economic landscape. Bloomberg News reported Schlegel as saying the Swiss franc had “really strengthened a lot.”
Looking ahead, Schlegel anticipates moderate growth in the global economy in the coming quarters. Despite this outlook, the SNB has decided to maintain its policy rate at 0 percent, citing minimal changes in inflationary pressures within Switzerland. Bloomberg News reported Schlegel stating that the SNB would travel negative if needed, but the bar for doing so was high.
Schlegel also emphasized the importance of building up equity capital, prioritizing it over profit distribution, as reported by finews.com. This focus on capital reserves suggests a cautious approach to future economic challenges. Further, Schlegel acknowledged that Swiss price pressures have “barely changed,” reinforcing the rationale behind the SNB’s current monetary policy stance.
