SNB’s Jordan sees ‘high probability’ of rate hike

Bloomberg

The Swiss National Bank (SNB) will probably have to raise borrowing costs again next month, President Thomas Jordan said.
“There is a high probability that there will again be a need to tighten monetary policy to be sure that we can combat inflation sufficiently,” Jordan told business owners in
Lausanne, Switzerland.
Inflation has become broader in Switzerland and the SNB is observing second-round effects in the economy, albeit limited ones, Jordan said. Whether the central bank hikes interest rates at its December 15 meeting depends on incoming data, he said.
Swiss officials have already lifted borrowing costs by 125 basis points to 0.5% this year. Economists see another 75 basis-point increase at the next quarterly meeting, according to Bloomberg’s latest survey.
Along with lifting rates, the SNB is also ready to sell foreign currency, according to Jordan. At an event last week, he’d already pledged to use “any measures necessary” to ensure price stability in the medium term.
“When the Swiss franc becomes too strong again we have the possibility to make interventions, but if it becomes too weak we also have the possibility to sell,” Jordan reiterated.
The strong Swiss franc has recently shielded the country from high imported inflation. Consumer price growth — which has already slowed for two consecutive months — is below 3%, compared to 10.7% in the surrounding euro area.