June 7, 2018 / 7:37 PM / a year ago

SNB's Jordan says too early to raise interest rates

ZURICH, June 7 (Reuters) - It is too early to raise interest rates in Switzerland, Swiss National Bank Chairman Thomas Jordan told CNN Money Switzerland in an interview broadcast on Thursday.

“It’s much too early at this moment,” Jordan said. “The situation is still quite fragile also regarding the exchange rate.

“That was the reason we continued our monetary policy, negative interest rates, but also the willingness and the readiness to intervene on foreign exchange markets if necessary,” Jordan said from the Swiss Economic Forum in Interlaken.

“Inflation is still quite low, just between 0.5 and 1 percent, fluctuating in that range, so we have to make sure that price stability is maintained in the future. But at the moment, we have very little risk of that.”

Asked about Italy’s new government, Jordan said, “It is very important that the new government in Italy follows the European rules, especially regarding the budget, but also continues structural reforms.”

He said he thought it was “very, very unlikely” Italy would leave the eurozone, but if that happened it would be a big shock and would have a big impact on markets.

The SNB holds its next monetary policy meeting on June 21 and is expected to keep monetary policy on hold. (Reporting by Silke Koltrowitz, editing by Larry King)

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