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SNB’s Jordan can’t eliminate recession

SNB's Jordan can't rule out recession - Blick paper Reuters. Swiss National Bank (SNB) Chairman Thomas Jordan of the Swiss National Bank (SNB) addresses a news conference in Zurich, September 22, 2022. REUTERS/Arnd Wiegmann

ZURICH (Reuters) – The Swiss National Bank will not think the Swiss economy will slide into recession but cannot rule the chance out, SNB Chairman Thomas Jordan said in a newspaper interview published on Friday.

“We usually do not expect that right now. The Swiss economy should grow by 2% this season,” the Blick paper quoted him as saying. The SNB gave that forecast on Thursday when it hiked its policy rate by 75 basis points into positive territory.

“Next year, the problem could cloud over further. But there are many of risks which could have a poor effect on economic growth. For instance, if energy prices rise sharply again or if the economy abroad deteriorates. Or if the coronavirus situation worsens again,” he said.

“All that would have an extremely negative impact. And one could no more completely eliminate the chance that the global economy, and therefore also the Swiss economy, could put on recession.”

Jordan said it had been around individual banks to choose what interest levels to provide to savers given that the SNB had ended the era of negative rates.

“However the banks contend with one another and be determined by savers bringing their money to the lender, having their salary account there. In the medium term, this can also cause interest levels to go up on bank accounts,” he said.

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