Thomas Jordan: Comments on the Swiss National Bank's monetary and investment policy

Speech by Mr Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, at the 109th Ordinary General Meeting of Shareholders of the Swiss National Bank, Berne, 28 April 2017.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Mr President of the Bank Council

Dear Shareholders

Dear Guests

I am delighted to be able to spend some time here with you today looking back over an eventful year and also casting a glance into the future. In the last 12 months, the international environment has been marked by two contrary developments - increasingly robust growth in the global economy on the one hand, and heightened political uncertainty on the other. In Switzerland, the moderate economic recovery continued over the course of the year, but inflation remains low and the Swiss franc is still under pressure. Overall, considerable challenges remain, both for our economy and for the Swiss National Bank.

In the first part of my speech, I will outline our assessment of the current economic situation at international level and in Switzerland. I will also talk about our monetary policy and show you why our expansionary course with the negative interest rate and our willingness to intervene in the foreign exchange market remains essential in the current environment. 

In the second part of my speech, I will go on to talk about the SNB's investment policy, which has become very important in the light of our interventions in the market. I will explain our objectives and the criteria we use for investing the foreign currency purchased in the context of these interventions. The investment policy must support our monetary policy and give us the necessary room for manoeuvre.