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Martin Schlegel, the new President of the Swiss National Bank, made a notable debut at his first media conference, opting for a more open and engaging style compared to his predecessor. He announced a significant interest rate cut of half a percentage point and encouraged direct questions to his fellow Governing Board members, signaling a potential shift towards greater transparency in central bank communication. Schlegel's approach contrasts with the traditionally secretive nature of central banking, hinting at a new era of interaction with the media and the public.
Martin Schlegel, the new Chairman of the Swiss National Bank, announced an unexpected 50 basis point interest rate hike, emphasizing the importance of timely action to avoid future corrections. He reassured that the inflation rate is projected to remain stable, reducing the likelihood of negative interest rates. The Governing Board's communication style has shifted to a more collaborative approach, with all members participating in media interactions.
Martin Schlegel, in his first presentation as Chairman of the Swiss National Bank, announced an unexpected 50 basis point interest rate hike, emphasizing the importance of timely action to avoid future corrections. The Governing Board remains committed to its mandate of price stability, with inflation projected to stay between 0 and 2 percent until Q3 2027. Schlegel's approach marks a shift in communication style, with a more collaborative presentation from the Board members during the media conference.
Antoine Martin, Vice-Chairman of the Swiss National Bank (SNB), stresses the importance of banks holding sufficient collateral to prepare for crises, supporting the Federal Council's proposals to enhance too-big-to-fail regulations. He emphasizes the need for strong relationships with the Financial Market Supervisory Authority and the Federal Council to ensure financial stability. Regarding the Swiss Franc, Martin expresses a calm outlook, indicating that recent developments are neither surprising nor problematic, while hinting at potential future interest rate cuts.
The Swiss National Bank (SNB) is exploring the introduction of a digital franc to adapt to evolving technologies and the potential rise of digitized assets linked to digital tokens. This central bank currency would facilitate interbank transactions and leverage blockchain technology, but it will not be classified as a cryptocurrency.
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