SNB Is in Comfortable Situation on Inflation, Schlegel Tells SRF

(Bloomberg) — Muted expectations for Swiss consumer-price growth leave the country’s central bank in a “comfortable” position, according to President Martin Schlegel.

“If you look at our inflation forecasts, we’re pretty much right in the middle of the range,” he said, referring to the Swiss National Bank’s 0-2% target.

Speaking in a radio interview with the Swiss public broadcaster SRF, Schlegel emphasized that the SNB’s concerns about price stability aren’t any higher than usual.

“It’s our responsibility, so of course we’re always worried, but in that sense, we’re in a comfortable situation,” he said.

Schlegel spoke after the SNB on Thursday left its key rate at zero — the level it’s been since June 2025. Swiss inflation was 0.8% in August and economists expect data due on Oct. 1 to reveal a slight acceleration in September, to 1%.

Switzerland’s low interest rates and benign inflation stand in contrast with most other major economies. The SNB’s peers at the US Federal Reserve and the European Central Bank have switched to tightening to contain the domestic impact of surging energy prices.

“At the moment it certainly is the case that internationally, central banks are raising rates,” Schlegel said.

The SNB chief was also asked about the threat of Switzerland’s biggest bank, UBS Group AG, leaving the country in response to stringent capital rules.

Schlegel was sanguine on that prospect.

“Ultimately, the choice of headquarters is a decision for UBS,” he said. “Of course, it’s a large bank and brings benefits to Switzerland. But Switzerland, of course, also brings benefits to UBS.”

–With assistance from Bastian Benrath-Wright.

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