Philipp Hildebrand: In the focus of the Swiss National Bank - economic outlook and monetary policy
Central bank: snb | Type: speech | Date: 2005-09-09

Philipp Hildebrand: In the focus of the Swiss National Bank - economic
outlook and monetary policy
Summary of a speech by Mr Philipp Hildebrand, Member of the Governing Board of the Swiss National
Bank, at the WGZ-Bank, Luxemburg, 9 September 2005.
The complete speech can be found in German on the Swiss National Bank’s website ().
* * *
The world economy expands at a robust pace b ut the growth rates of the imp ortant economic blocs
diverge considerably. In spite of the accommo dative moneta ry policy in mo st indu strial countries,
inflation and inflation expectations remain well contained which may, among other things, be due to
the pro cess of globalisation and the credibility of central ba nks. Switzerla nd, small and e xtremely
open, benefits from a re covering global economy. The conditions for returni ng to a path of modest
expansion look favourable. However, there are certain risks that may affect th e global and the Swiss
economy n egatively. Most importa ntly, high oil p rices and the devastatin g effect of the hurricane
„Katrina”, as well a s the possibility of increa sing long-term intere st rate s h ave to be me ntioned. A
persistently high price of oil could act as a brake to demand dynamics and growth prospects could
also be threatened by soa ring long-term interest rates, an effe ct that could be amplified through the
housing channel. In the foreign exchange markets, stru ctural and cyclical fa ctors continue to
determine the value of the US-dollar.