ECB's Centeno: inflation is on target and the economy is struggling

As a small open economy with a safe-haven currency, Switzerland is strongly influenced by global economic fluctuations. Because of the safe-haven nature of the Swiss franc, the impact of declines in global demand on the Swiss economy tends to be reinforced by an appreciating currency. As a result, global economic downturns have repeatedly been followed by significant decreases in inflation. Given the strong influence of developments abroad on Swiss inflation, the SNB needs a monetary policy framework that allows for some flexibility in terms of accepted inflation rates. Accordingly, the SNB defines price stability as any inflation rate between 0% and 2%, and seeks to keep inflation within this range over the medium term. This has allowed the SNB to respond flexibly to shocks and continuously weigh up the costs and benefits of its monetary policy measures. While there have been episodes when inflation was temporarily outside the price stability range, it has always returned relatively quickly to values within that range. post: SNB CHAIRMAN: RECOGNISES SAFE HAVEN NATURE OF SWISS FRANC; DECLINES IN GLOBAL ECONOMY HIT SWITZERLAND HARDER DUE TO CURRENCY'S APPRECIATION post: SWISS NATIONAL BANK CHAIRMAN: **SWITZERLAND NEEDS FLEXIBLE INFLATION TARGET, AS IT CURRENTLY HAS **INFLATION TARGET HAS ALLOWED CENTRAL BANK TO RESPOND FLEXIBLY TO SHOCKS **CENTRAL BANK'S MAIN TOOLS ARE POLICY INTEREST RATE, FOREX INTERVENTIONS **RECOGNISES SAFE HAVEN…

Ladies and gentlemen, I am pleased to be here again at the European Banking Congress. It is my particular pleasure to share the stage today with my French colleague and dear ...