Martin Schlegel is the Chairman of the Governing Board of the Swiss National Bank (SNB).
He took over as chairman in 2024 and leads the SNB’s three-member Governing Board, which sets Switzerland’s monetary policy.
He spoke Tuesday. Schlegel downplayed short-term deflation risks, keeps medium-term inflation focus, and leaves FX intervention on the table.
Summary:
-
SNB expects inflation to rise from current ultra-low levels
-
Temporary negative prints possible, not a policy alarm
-
Inflation at 0.1%, bottom of 0–2% target range
-
Policy rate at 0%; FX intervention remains an option
-
US tariffs weighing on parts of Swiss industry
Schlegel said Switzerland could experience temporary months of negative inflation but stressed that such readings would not automatically trigger concern from policymakers, as the central bank remains focused on medium-term price stability.
Speaking in Zurich, Schlegel noted that inflation remains extremely subdued, with January’s annual reading at just 0.1%, the lower edge of the SNB’s 0–2% target range. While acknowledging that inflationary pressures have barely shifted, he said the central bank expects price growth to pick up in the months ahead. A handful of negative prints would not constitute an alarm signal, he added, underscoring that monetary policy decisions are guided by broader trends rather than short-term fluctuations.
With the policy rate currently at 0%, the SNB’s room for conventional easing is limited. Earlier this month, Schlegel described the combination of low inflation and a zero policy rate as a challenging environment. Against that backdrop, he reiterated that the SNB stands ready to intervene in foreign exchange markets if necessary to ensure price stability.
On the global front, Schlegel warned that US tariffs and heightened uncertainty have weighed on economic growth, though many sectors have proven more resilient than anticipated. Around one in four Swiss companies surveyed by the SNB report negative effects from tariffs, with engineering firms among the most exposed
