ZURICH (Reuters) – Monetary policy should remain focused on price stability, Swiss National Bank Chairman Thomas Jordan said in remarks aired on Saturday.
He expressed concerns about low economic growth and excessive deficits. In his interview with national broadcaster SRF, he emphasized these issues.
One of the most pressing challenges is insufficient growth, Jordan told SRF. Another is the need for structural reforms to increase countries’ productivity and boost growth, he added.
“In many countries the debt level is too high, deficits are too big,” Jordan said on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.
“That cannot be sustainable and will have to be corrected in the future.
“It is very important that at the same time monetary policy remains geared towards price stability, rather than monetary policy being needed to finance debt, otherwise it will not end well.”
In his address, the Swiss National Bank Chairman outlined strategic priorities for the central bank. He emphasized navigating challenges of low growth and price stability. The Chairman highlighted the importance of structural reforms and fiscal measures. Additionally, he stressed monetary policy adjustments. The Swiss National Bank collaborates with government authorities and international partners to implement growth-supportive policies. These measures prioritize sustainable growth and price stability. The central bank remains committed to steering Switzerland’s economy proactively and coordinately. This approach addresses the complexities of the current economic landscape. Additionally, the Chairman highlighted the importance of transparent communication and forward guidance in guiding market expectations and reinforcing the central bank’s commitment to its mandate.
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