Source: KEYSTONE / MARCEL BIERI
Andrea Maechler, member of the three-member executive board of the Swiss National Bank (SNB), rejects demands by politicians from various parties that the SNB should contribute more to the costs of measures worth billions to combat the corona crisis.
An additional agreement between the SNB and the Federal Department of Finance concluded in March this year promises the federal government and the cantons a maximum profit distribution of CHF 4 billion for the 2019 and 2020 financial years.
That is the top limit, Maechler said in an interview with the “Neue Zürcher Zeitung” (Saturday edition). She rejects a one-time special distribution to partially finance the Covid 19 costs. That would run counter to monetary policy.
Maechler does not believe that the economy will recover quickly. An upturn in the form of a slim and complete “V” is unlikely. Social distancing, higher indebtedness, rising unemployment and falling income suggest that the recovery will take more time.
When asked whether inflation or rather deflation was to be expected due to the crisis, the board member said that the stronger franc and the shock of massively cheaper oil pushed prices down in the short term.
A deflationary spiral is not to be feared. Inflation expectations are well anchored. And the National Bank does not see any inflation risk today. The measures to support the economy are necessary and there is currently no risk of inflation.
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