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SNB board member says inflation is within target range
Global Banking & Finance Review®
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By Emma Farge
GENEVA (Reuters) – Swiss National Bank governing board member Petra Tschudin said on Thursday that inflation was comfortably within the range it hoped to see.
Inflation in October dropped to 0.6%, its lowest level since June 2021, stoking analyst expectations the SNB will press ahead with further rate cuts.
Asked about the risk of possible deflation at a banking event in Geneva, she said: “Inflation is now comfortably in the range of 0-2% where we want to see inflation (and) our definition of price stability.”
She declined to comment further on the outlook for monetary policy which she said will be decided at the SNB’s upcoming meeting on Dec. 12.
The central bank has been at the forefront of interest rate cuts this year, lowering borrowing costs three times in 2024 to 1%.
(Reporting by Emma Farge; Editing by Ludwig Burger and Diane Craft)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to maintain a stable economy.
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and affect economic activity.
Price stability refers to a situation in which prices in an economy do not change significantly over time, allowing consumers and businesses to make informed financial decisions.
Deflation is the decrease in the general price level of goods and services, which can lead to reduced consumer spending and economic stagnation.
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