Swiss National Bank Chairman Martin Schlegel said today that global economic growth may slow temporarily as uncertainty builds. His comments came during an event for the Swiss hospitality industry held in Bern and are documented in presentation slides from the speech.
Schlegel highlighted the Swiss hotel sector's capacity to remain resilient and price competitive even while the Swiss franc has strengthened. He further observed that hotel rates abroad, when measured in local currencies, have risen by more than hotel prices in Switzerland.
According to the presentation slides, Schlegel attributed part of the appreciation pressure on the Swiss franc to the conflict in the Middle East. In response to currency dynamics, he said the SNB has increased its readiness to intervene in the foreign exchange market - a position the central bank has expressed previously.
On the inflation front, Schlegel told the audience that mid-term inflation pressure in Switzerland has barely changed, indicating a relatively stable outlook for price pressures over the medium term based on the central bank's assessment.
Context and focus of remarks
The remarks were made at an industry event in Bern and are recorded in the slides from Schlegel's presentation. The central messages emphasized three themes: the potential for a temporary slowdown in global growth amid rising uncertainty, the comparative pricing trend in the hospitality sector, and the SNB's stance toward foreign exchange intervention.
Implications highlighted in the presentation
- The Swiss hotel industry has remained competitive despite currency strength.
- Hotel prices abroad have increased more in local currency terms than Swiss hotel prices.
- The SNB is prepared to step into FX markets if needed, and mid-term inflation pressure in Switzerland remains largely unchanged.
Schlegel's comments underscore the central bank's monitoring of currency movements and their potential effects on sectors sensitive to exchange rates, while indicating a cautious view on the outlook for global growth as uncertainty rises.