Swatch CEO Says ‘It’s a Pity’ SNB Didn’t Cut Rates Sooner

(Bloomberg) — A surprise interest rate cut from the Swiss National Bank is welcome but should have come much sooner, according to Swatch Group AG Chief Executive Officer Nick Hayek. 

“It’s a pity it wasn’t done earlier,” he said at the watch maker’s annual press conference in Biel on Thursday. “It will hopefully make the Swiss franc less strong.”

Hayek has long been a critic of SNB’s monetary policy, blaming the strength of the franc for its impact on exports. Exchange rates had a negative impact of 554 million Swiss francs ($621 million) on Swatch’s performance in 2023, the company said.

“Just a reminder, we already had 100 million francs wiped off our turnover this year because of the exchange rate in two months,” Hayek said on Thursday.

The SNB isn’t the only target of Hayek’s ire. During a raucous call with analysts in January, he snapped that investors can put their money elsewhere if they don’t like the company or the way it’s managed and governed.

©2024 Bloomberg L.P.