ZURICH, Feb 2 (Reuters) - The Swiss National Bank expects inflation to remain elevated in Switzerland "for the time being," Chairman Thomas Jordan said on Thursday, raising the possibility of further interest rate hikes to bring price rises under control
"Inflation in Switzerland is currently above the level of price stability," Jordan told an event in Zurich. "It cannot be ruled out that the SNB has to increase interest rates to ensure price stability."
Although low by international standards, Swiss inflation rose to 2.8% last year, outside the SNB's price stability target for prices to rise by up to 2% annually.
The SNB hiked three times in 2022 to raise its policy rate out of negative territory to 1%. The market currently shows a 57% probability for 25-basis-point increase at the SNB's next meeting in March and 43% probability for a 50-basis-point increase.
Other central banks are also raising rates to tackle resurgent inflation, including increases by the European Central Bank and the Bank of England on Thursday.
The SNB is prepared to be active in the foreign currency markets to ensure the appropriate monetary conditions, Jordan added.
Jordan said the central bank wants to ensure inflation-driven price increases do not become entrenched.
Although Swiss wages were rising at higher levels than previous years, the increases of more than 2% were lower than the 4% to 5% increases seen in Europe and the United States, he added.
"We are seeing no wage-price spiral in Switzerland," Jordan said.
