SNB's Schlegel says medium-term inflation pressure unchanged

SNB Chairman Martin Schlegel said medium-term inflation pressure in Switzerland remains basically unchanged, striking a cautious but balanced tone on the outlook.

Speaking on Tuesday, Schlegel acknowledged that the US-Iran conflict and the resulting surge in energy prices create near-term inflation risks. He noted that higher energy prices are likely to lift Swiss inflation in coming quarters. However, he emphasized that the broader inflation outlook remains contained. The SNB's latest projections show inflation staying within its price stability range over the forecast horizon, with average inflation expected around 0.5% in both 2026 and 2027. Switzerland's relatively low inflation environment and the strength of the Swiss franc continue to provide a buffer against external price pressures.

For foreign exchange and currencies traders, the SNB's steady inflation outlook reinforces expectations for a stable monetary policy stance. The Swiss franc has been a safe-haven beneficiary amid geopolitical tensions, and Schlegel's comments suggest the SNB sees no urgency to adjust rates. Traders can monitor real-time franc pairs on NowPrice's live fx dashboard to track market reactions to central bank commentary. The SNB's focus on medium-term stability may limit franc downside even if energy prices spike temporarily.

Looking ahead, markets will watch for further SNB communication and upcoming Swiss inflation data. The next quarterly SNB monetary policy assessment is due in June, where any shift in the inflation forecast could trigger franc volatility. Additionally, developments in the US-Iran situation and energy markets will remain key drivers for risk sentiment and safe-haven flows.