(Adds details, further comments, background)
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.
(Reporting by John Revill; Editing by Chris Reese and Cynthia
Osterman)
Messaging: john.revill.thomsonreuters.com@reuters.net))
