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UPDATE 1-Swiss National Bank sees likely need to tighten policy again to fight inflation

·1 min read

(Adds background)

ZURICH, June 22 (Reuters) - Ongoing inflationary pressure means further monetary policy tightening will likely be needed, Swiss National Bank Chairman Thomas Jordan said on Wednesday, after the central bank last week raised its interest rate for the first time in 15 years.

"We published a new inflation forecast. If you interpret it correctly, you see that there's a certain need probably to tighten further," Jordan told a conference in Zurich.

"We don't exactly know when and how much, but this inflationary pressure is not yet combated completely," Jordan added.

In a surprise move, the SNB last Thursday raised its policy interest rate to -0.25% from the -0.75% level it has deployed since 2015 and said it was ready to hike further, joining other central banks in tightening monetary policy to fight resurgent inflation.

Speaking at the Point Zero Forum conference just outside Zurich, Jordan said it now remained to be seen whether that move was sufficient or not.

"We still have negative interest rates. In a way, this is still expansionary. And we should not forget that by just keeping rates unchanged, and having a much higher inflation rate, monetary policy...becomes even more expansionary," he said, adding increasing rates "to some extent" adjusted monetary policy in the right direction. (Reporting by Brenna Hughes Neghaiwi, editing by John Revill and Carmel Crimmins)