Outgoing Swiss National Bank President Thomas Jordan, who has been leading the institution for 12 years, wears a reputation for stability and doesn’t have a problem if his tenure is viewed as dull in some quarters, given that he simply did what was right for Switzerland.

In an interview with Bieler Tagblatt published Saturday, Jordan said, “It’s better to be called boring or stubborn than to be told that I’m pursuing the wrong monetary policy.” He underlined that the SNB had accepted challenges at all times and taken the appropriate decisions during his presidency.

Jordan cited the 2008 financial crisis, the UK’s departure from the European Union and the Covid pandemic, which he said the Swiss economy handled well. “Especially when we compare ourselves with our European environment, Switzerland has come through these difficult years very well,” he said.

While Jordan's presidency can be characterised as relatively uneventful, it had its share of dramatic moments. Most notably, his decision to scrap the SNB’s currency cap in 2015 without notice, sent a shockwave through markets. He has, however, defended that move and nearly eight years of negative interest rates as necessary and successful measures, given haven flows into the Swiss currency. Since his presidency began in 2012, the SNB “prevented deflation several times,” he said.

Jordan also ruled out the introduction of a new minimum exchange rate. The 61-year-old president added there was unlikely to be a future for him in political office when he leaves the central bank at the end of September. "I don't think so", he said, when asked about the prospect. "As president of the SNB, I already had a public role."

The tenure of Thomas Jordan at the SNB was marked by a number of strategic decisions that helped Switzerland sail through various economic challenges. His cautious yet decisive leadership has left an eternal mark on the institution, quite assuredly, for the stability of the system in the times of uncertainty.

Outgoing Swiss National Bank President Thomas Jordan, who has been leading the institution for 12 years, wears a reputation for stability and doesn’t have a problem if his tenure is viewed as dull in some quarters, given that he simply did what was right for Switzerland.

Outgoing Swiss National Bank President Thomas Jordan, who has been leading the institution for 12 years, wears a reputation for stability and doesn’t have a problem if his tenure is viewed as dull in some quarters, given that he simply did what was right for Switzerland. In an interview with Bieler Tagblatt published Saturday, Jordan said, “It’s better to be called boring or stubborn than to be told that I’m pursuing the wrong monetary policy.” He underlined that the SNB had accepted challenges at all times and taken the appropriate decisions during his presidency. Jordan cited the 2008 financial crisis, the UK’s departure from the European Union and the Covid pandemic, which he said the Swiss economy handled well. “Especially when we compare ourselves with our European environment, Switzerland has come through these difficult years very well,” he said. While Jordan's presidency can be characterised as relatively uneventful, it had its share of dramatic moments. Most notably, his decision to scrap the SNB’s currency cap in 2015 without notice, sent a shockwave through markets. He has, however, defended that move and nearly eight years of negative interest rates as necessary and successful measures, given haven flows into the Swiss currency. Since his presidency began in 2012, the SNB “prevented deflation several times,” he said. Jordan also ruled out the introduction of a new minimum exchange rate. The 61-year-old president added there was unlikely to be a future for him in political office when he leaves the central bank at the end of September. "I don't think so", he said, when asked about the prospect. "As president of the SNB, I already had a public role." The tenure of Thomas Jordan at the SNB was marked by a number of strategic decisions that helped Switzerland sail through various economic challenges. His cautious yet decisive leadership has left an eternal mark on the institution, quite assuredly, for the stability of the system in the times of uncertainty.

Thomas Jordan reflects on his tenure at Swiss National Bank as his departure nears

Central banks around the world are taking different approaches to monetary policy to counter inflation pressures. Swiss National Bank (SNB) became the first major central bank in the developed world to cut interest rates this cycle. The key driver for the snb's action appears to be a sharper-than-expected fall in inflation.

Swiss National Bank makes surprise rate cut

The Swiss National Bank expects a $143 billion loss for the 2022 financial year, the biggest loss in its 116-year history. Watch this to know more.

World Business Watch: Swiss central bank posts biggest loss in 116 years

The Swiss National Bank (SNB) estimated on Monday the largest yearly loss in its 116-year existence. The bank lost $143 billion (132 billion Swiss francs) in 2022, as the value of its share and bond portfolio was negatively impacted by declining equity and fixed-income markets. The loss means that the SNB will not be able to distribute any profits to central and regional Swiss governments for 2022.

The preliminary figure released on Monday was far higher than the previous record loss of 23 billion francs recorded in 2015. It represented a reversal from a profit of 26 billion francs in 2021, The Star reported. The loss indicates that the payments to its shareholders will be affected too.

SNB suffered a loss of 131 billion francs from its foreign exchange positions after it purchased over 800 billion francs in stocks and bonds during a protracted drive to devalue the Swiss franc.

Also Read |&nbsp;<a href="http://www.wionnews.com/world/top-swiss-bank-credit-suisse-fined-over-drugs-gang-money-laundering-492505" hreflang="en">Top Swiss Bank 'Credit Suisse' fined over drugs gang money laundering</a>

Last year, as central banks all over the world, increased interest rates to fight inflation, global stock markets weakened and bond prices plunged. Exchange rate losses were caused by the strong Swiss franc, which in July surged above parity against the euro, as per Reuters.

According to analysts, SNB Chairman Thomas Jordan also increased interest rates three times in 2022 in an effort to reduce excessive Swiss inflation.

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While the loss is “regrettable,” interim profits had predicted such an outcome, the conference of cantonal finance chiefs told SDA, according to Bloomberg.

The SNB's gold holdings were the only bright spot -- they totalled 1,040 tonnes at the end of 2021 and increased in value by $400 million francs in 2022.

It’s unlikely that the SNB will make amends in its policy, Reuters reported. The bank is slated to release the detailed annual figures on March 6.

(With inputs from agencies)

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The Swiss National Bank (SNB) estimated on Monday the largest yearly loss in its 116-year existence. The bank lost $143 billion (132 billion Swiss francs) in 2022, as the value of its share and bond portfolio was negatively impacted by declining equity and fixed-income markets.

The Swiss National Bank (SNB) estimated on Monday the largest yearly loss in its 116-year existence. The bank lost $143 billion (132 billion Swiss francs) in 2022, as the value of its share and bond portfolio was negatively impacted by declining equity and fixed-income markets. The loss means that the SNB will not be able to distribute any profits to central and regional Swiss governments for 2022. The preliminary figure released on Monday was far higher than the previous record loss of 23 billion francs recorded in 2015. It represented a reversal from a profit of 26 billion francs in 2021, The Star reported. The loss indicates that the payments to its shareholders will be affected too. SNB suffered a loss of 131 billion francs from its foreign exchange positions after it purchased over 800 billion francs in stocks and bonds during a protracted drive to devalue the Swiss franc. Also Read | Top Swiss Bank 'Credit Suisse' fined over drugs gang money laundering Last year, as central banks all over the world, increased interest rates to fight inflation, global stock markets weakened and bond prices plunged. Exchange rate losses were caused by the strong Swiss franc, which in July surged above parity against the euro, as per Reuters. According to analysts, SNB Chairman Thomas Jordan also increased interest rates three times in 2022 in an effort to reduce excessive Swiss inflation. Watch | No claimants for Swiss Bank accounts While the loss is “regrettable,” interim profits had predicted such an outcome, the conference of cantonal finance chiefs told SDA, according to Bloomberg. The SNB's gold holdings were the only bright spot -- they totalled 1,040 tonnes at the end of 2021 and increased in value by $400 million francs in 2022. It’s unlikely that the SNB will make amends in its policy, Reuters reported. The bank is slated to release the detailed annual figures on March 6. (With inputs from agencies) WATCH WION LIVE HERE:

Swiss National Bank estimates record $143 billion loss in 2022

Switzerland exited the era of negative interest rates when its central bank joined others around the world in tightening monetary policy more aggressively to combat resurgent inflation.

World Business Watch: Swiss National Bank exits negative rates era with 0.75% hike

The Swiss National Bank (SNB) raised its policy interest rate for the first time in 15 years in a surprise move on Thursday and said it was ready to hike further, joining other central banks in tightening monetary policy to fight resurgent inflation.

The central bank increased its policy rate to -0.25% from the -0.75% level it has deployed since 2015, sending the safe-haven franc sharply higher. Nearly all the economists polled by Reuters had expected the SNB to keep rates steady.

It was the first increase by the SNB since September 2007, and followed a 0.75% rate hike by the U.S. Federal Reserve on Wednesday.

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Other central banks are also raising interest rates as they attempt to cool inflation driven higher by surging fuel and food prices that are straining budgets for households and businesses.

The Bank of England looks set to raise interest rates again on Thursday as it tries to tackle an inflation rate on course for double digits.

The European Central Bank signalled last week it would raise its rates in July to check euro zone inflation that hit 8.1% last month.

SNB Chairman Thomas Jordan said the inflation situation with Switzerland seeing its highest price rises in nearly 14 years during May - meant the SNB may have to act again.

"The new inflation forecast shows that further increases in the policy rate may be necessary in the foreseeable future," he told a news conference.

Thursday's rate increase was necessary to check rising prices in Switzerland, which had spread to goods and services not previously affected by the impact of the war in Ukraine and supply chain bottlenecks linked to the pandemic.

Watch |&nbsp;Bank of England to raise interest rates as UK inflation heads for 10%

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"In the current environment, price increases were being passed on more quickly, and are also being more readily accepted, than was the case until recently," Jordan said.

"There is the threat of second-round effects becoming entrenched if inflation remains above 2% for a long period."

He said recent depreciation meant the Swiss franc was no longer highly valued on currency markets long a concern for the SNB and that the SNB was ready to intervene in markets to check excessive appreciation or weakening of the franc.

The safe-haven franc's strength had dampened the impact of inflation in Switzerland by reducing price rises for fuel and food imports, but this was less the case following its recent weakening, Jordan said.

Also read |<a href="https://www.wionews.com/business-economy/ukraine-jacks-up-key-rate-to-25-in-first-hike-since-russian-invasion-484895">&nbsp;Ukraine jacks up key rate to 25% in first hike since Russian invasion</a>

"Thus the inflation imported from abroad has increased," he said. "Another consequence of this depreciation coupled with significantly higher inflation abroad is that the franc is no longer highly valued."

The SNB raised its inflation forecasts for 2022 to 2.8% from the 2.1% it gave in March. It also expects inflation of 1.9% and 1.6% in 2023 and 2024, up from its previous view for prices rising by 0.9% in both years.

The SNB still expects the Swiss economy to grow by around 2.5% in 2022.

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The Swiss National Bank (SNB) raised its policy interest rate for the first time in 15 years in a surprise move on Thursday and said it was ready to hike further, joining other central banks in tightening monetary policy to fight resurgent inflation.

The Swiss National Bank (SNB) raised its policy interest rate for the first time in 15 years in a surprise move on Thursday and said it was ready to hike further, joining other central banks in tightening monetary policy to fight resurgent inflation. The central bank increased its policy rate to -0.25% from the -0.75% level it has deployed since 2015, sending the safe-haven franc sharply higher. Nearly all the economists polled by Reuters had expected the SNB to keep rates steady. It was the first increase by the SNB since September 2007, and followed a 0.75% rate hike by the U.S. Federal Reserve on Wednesday. Also read | US Federal Reserve announces historic interest rate hike; Wall Street stocks surge Other central banks are also raising interest rates as they attempt to cool inflation driven higher by surging fuel and food prices that are straining budgets for households and businesses. The Bank of England looks set to raise interest rates again on Thursday as it tries to tackle an inflation rate on course for double digits. The European Central Bank signalled last week it would raise its rates in July to check euro zone inflation that hit 8.1% last month. SNB Chairman Thomas Jordan said the inflation situation with Switzerland seeing its highest price rises in nearly 14 years during May - meant the SNB may have to act again. "The new inflation forecast shows that further increases in the policy rate may be necessary in the foreseeable future," he told a news conference. Thursday's rate increase was necessary to check rising prices in Switzerland, which had spread to goods and services not previously affected by the impact of the war in Ukraine and supply chain bottlenecks linked to the pandemic. Watch | Bank of England to raise interest rates as UK inflation heads for 10% "In the current environment, price increases were being passed on more quickly, and are also being more readily accepted, than was the case until recently," Jordan said. "There is the threat of second-round effects becoming entrenched if inflation remains above 2% for a long period." He said recent depreciation meant the Swiss franc was no longer highly valued on currency markets long a concern for the SNB and that the SNB was ready to intervene in markets to check excessive appreciation or weakening of the franc. The safe-haven franc's strength had dampened the impact of inflation in Switzerland by reducing price rises for fuel and food imports, but this was less the case following its recent weakening, Jordan said. Also read | Ukraine jacks up key rate to 25% in first hike since Russian invasion "Thus the inflation imported from abroad has increased," he said. "Another consequence of this depreciation coupled with significantly higher inflation abroad is that the franc is no longer highly valued." The SNB raised its inflation forecasts for 2022 to 2.8% from the 2.1% it gave in March. It also expects inflation of 1.9% and 1.6% in 2023 and 2024, up from its previous view for prices rising by 0.9% in both years. The SNB still expects the Swiss economy to grow by around 2.5% in 2022. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Swiss National Bank ready for more rate hikes after shock move

Central banks grappling with fast-changing financial technology and companies like <a href="https://www.wionews.com/world/facebook-inc-chief-executive-mark-zuckerberg-says-delay-in-flagging-fake-pelosi-video-was-execution-mistake-230784">Facebook</a> moving into finance will aim to work together more closely through an innovation hub approved on Sunday by the Bank for International Settlements.

The BIS said the intention of the hub, which will be based in Basel, Hong Kong and Singapore, is to improve the functioning of the global financial system and it will identify and develop insights into trends in technology affecting central banking.

Facebook`s plan to expand into payments and launch its own Libra cryptocurrency was not mentioned in the BIS statement, but the social media giant`s move has helped crystallise opinion among central bankers on the urgency of coordinating regulatory responses to financial technology trends.

"The IT revolution knows no borders and therefore has repercussions in multiple locations simultaneously," BIS Chairman Jens Weidmann said in a statement following the decision to create the hub at a BIS board meeting.&nbsp;

The hub will focus on helping central banks to "identify relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability," he added.

Basel-based BIS, a central bank umbrella group, has already called on politicians to closely scrutinise Big Tech`s incursion into finance, a move that raises questions about data privacy, competition, markets and banking.

Details about the hub were limited, and the BIS said it was not able to provide details on investment or staffing levels.

The <a href="https://www.wionews.com/india-news/money-in-swiss-banks-india-slips-to-74th-place-uk-remains-on-top-231751">Swiss National Bank</a> (SNB), the Hong Kong Monetary Authority and the Monetary Authority of Singapore have all signed up to support the initiative.

SNB Chairman Thomas Jordan said the central bank would step up its efforts in scrutinizing new financial technology.

"The SNB is already keeping very close track of technological innovations in the financial area, and works actively within the central banking community in identifying and assessing relevant developments at an early stage," Jordan said.

Central banks grappling with fast-changing financial technology and companies like Facebook moving into finance will aim to work together more closely through an innovation hub approved on Sunday by the Bank for International Settlements.

Central banks grappling with fast-changing financial technology and companies like Facebook moving into finance will aim to work together more closely through an innovation hub approved on Sunday by the Bank for International Settlements. The BIS said the intention of the hub, which will be based in Basel, Hong Kong and Singapore, is to improve the functioning of the global financial system and it will identify and develop insights into trends in technology affecting central banking. Facebook`s plan to expand into payments and launch its own Libra cryptocurrency was not mentioned in the BIS statement, but the social media giant`s move has helped crystallise opinion among central bankers on the urgency of coordinating regulatory responses to financial technology trends. "The IT revolution knows no borders and therefore has repercussions in multiple locations simultaneously," BIS Chairman Jens Weidmann said in a statement following the decision to create the hub at a BIS board meeting. The hub will focus on helping central banks to "identify relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability," he added. Basel-based BIS, a central bank umbrella group, has already called on politicians to closely scrutinise Big Tech`s incursion into finance, a move that raises questions about data privacy, competition, markets and banking. Details about the hub were limited, and the BIS said it was not able to provide details on investment or staffing levels. The Swiss National Bank (SNB), the Hong Kong Monetary Authority and the Monetary Authority of Singapore have all signed up to support the initiative. SNB Chairman Thomas Jordan said the central bank would step up its efforts in scrutinizing new financial technology. "The SNB is already keeping very close track of technological innovations in the financial area, and works actively within the central banking community in identifying and assessing relevant developments at an early stage," Jordan said.

World's central banks tackle technology with innovation hub

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