Swiss central bank urged to tread carefully over tariffs

The Swiss National Bank (SNB) shouldn’t seek to soften the impact of United States tariffs through monetary-policy channels, according to a group of economists. +Get the most important news from Switzerland in your inbox Swiss exporters are currently in a double bind, enduring the 39% levy imposed this month as well as a strong franc that’s appreciated by about 10% against the dollar since President Donald Trump’s initial trade announcements in April. While the SNB could move to help them by either reducing interest rates or weakening the currency through interventions, both responses bear costs, uncertainties and risks, according to the SNB Observatory — a group of academics usually critical of the central bank. They urge it not to shift policy specifically to ease pain from the surcharges. “Any policy intervention would carry inflationary risks and invite renewed accusations of currency manipulation,” the group said Tuesday in a report. “In practice, the SNB can do little that ... Full story here Are you the author? Previous post See more for 3.) Swissinfo Business and Economy Next post
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