SNB Chair Jordan spoke in an interview with Swiss newspaper Neue Zuercher Zeitung (info via Reuters) He says it would be "completely premature" to change the Bank's very loose monetary policy, and that more could be done if necessary:
Jordan remarks (in brief):
- A huge balance sheet is not a problem per se
- We can even expand the balance sheet further if that is necessary,
- Swiss franc remains highly valued
- inflation is only slightly above zero
- productive capacities are not fully utilised in Switzerland
And, given all that:
- it would be completely premature to start reducing the balance sheet and tighten monetary conditions
- It would be wrong to now signal to the world that the SNB is the first central bank considering a restrictive policy
(ps. I posted this over the weekend but the tech gremlins appear to have gobbled it up ... re posting it now)
