Swiss National Bank can’t exclude further tightening, says Jordan

BLOOMBERG

The Swiss National Bank (SNB) may need to raise borrowing costs more, according to President Thomas Jordan.
“We can’t exclude that we might have to tighten monetary policy again,” Jordan told reporters in Washington, where he’s attending meetings of the International Monetary Fund (IMF) and World Bank.
The SNB has increased interest rates by 225 basis points in the current tightening cycle and is expected to hike again when it meets in June.
Switzerland is still reeling from the takeover of Credit Suisse Group AG by UBS Group AG less than a month ago. The government and SNB’s efforts to avoid an international financial crisis were lauded in talks during the IMF meeting, according to Swiss Finance Minister Karin
Keller-Sutter.
European Central Bank (ECB) President Christine Lagarde “appreciated the speed and decisiveness of our steps,” she said at the joint briefing with Jordan, adding that IMF Chief Kristalina Georgieva expressed a similar sentiment.
Jordan also said there was a widely-shared view at the meeting that policymakers must review the resolution framework for troubled banks that was drawn up after the last financial crisis, and that lessons from Credit Suisse’s takeover must be drawn.