All this generates a high level of uncertainty with regard to future developments in the global economy. Swiss economic outlook I will now look at economic developments in Switzerland. As expected, growth in Switzerland picked up somewhat in the first quarter, after having been relatively weak in the previous quarter. The rebound was mainly attributable to the upturn in business activity in manufacturing and the banking sector. On the demand side, exports of goods – which had still been declining in the previous quarter – and construction investment were the main growth drivers. Nevertheless, the capacity of the Swiss economy is still not fully utilised overall. Technical capacity utilisation in manufacturing remains considerably below its long-term average. Although employment was up in the first quarter, the unemployment rate remained unchanged. We expect the moderate recovery to continue in the coming quarters. For 2014, we anticipate that the growth rate will remain at around 2.0%. As we continue to see gradual improvement in the international environment, export demand is likely to rise. Over time, this should encourage corporate investment and stimulate demand for labour. The level of residential construction orders remains high. On the whole, however, we expect a considerable slowdown in the growth momentum of residential construction investment. In addition to global risks, the Swiss economy also faces uncertainty at home. In the past few weeks, the SNB’s delegates for regional economic relations asked companies to assess the impact of the popular initiative on curbing mass immigration on their business activity.

Thomas Jordan: Swiss National Bank’s assessment of the economic situation Introductory remarks by Mr Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, at the media news conference of the Swiss National Bank, Berne, 19 June 2014. *  *  *  Ladies and gentlemen Welcome to the Swiss National Bank’s six-monthly news conference. As usual, I will begin by explaining the monetary policy decision and outlining our assessment of the economic situation. Afterwards, Jean-Pierre Danthine will present our latest Financial Stability Report, before Fritz Zurbrügg comments on current developments in the financial markets. Following our introductory remarks, we will be pleased to answer any questions you might have. Monetary policy decision I will begin with the monetary policy decision. The SNB is maintaining its minimum exchange rate of CHF 1.20 per euro. The target range for the three-month Libor will remain unchanged at 0.0–0.25%. The Swiss franc is still high. We will therefore continue to enforce the minimum exchange rate with the utmost determination. If necessary, we are prepared to buy foreign currency in unlimited quantities for this purpose. With interest rates close to zero, the minimum exchange rate is the right tool to avoid an undesirable tightening of monetary conditions. This applies especially if the upward pressure on the Swiss franc were to intensify once again. And, if required, we are also willing to take further measures. Our new conditional inflation forecast shows that inflationary pressure has receded once more in the medium term.