, where the degree of resource utilisation is more than satisfactory, demand should stabilise. for 2010 as a whole, the snb expects real gdp growth of between 0. 5 % and 1 %, following a decline of around 1. 5 % in 2009. changes in monetary and financial conditions overall, monetary conditions are a reflection of our expansionary policy, especially with respect to interest rates and the monetary aggregates. the libor is currently at the level targeted since march this year, i. e. 25 basis points, a level which can be regarded as a floor. the fact that it was impossible to bring the rate down any lower than this led us, in march, to introduce other instruments in order to make our monetary policy as expansionary as the circumstances demanded. monetary conditions have become more expansionary via the interest rate channel in particular. indeed, credit premia on the capital markets have declined steadily since the beginning of the year. as yields on confederation bonds have remained low, other long - term yields have also trended downwards. it has thus become cheaper for companies to raise funds by borrowing on the capital market. in addition, our figures show that financing in the form of bank loans has also become more attractive following the decline in the libor. in real terms – i. e. after factoring in expected inflation – interest rates are even lower. the swiss franc has appreciated slightly in trade - weighted terms, as a result of the recent weakening of the dollar. however, it has remained stable against the euro, which shows that the monetary policy followed since march has been effective. an appreciation of the swiss franc against the euro would run counter to the relaxation in monetary conditions brought about through the interest rate channel. this is why the snb will continue to act decisively to prevent any excessive appreciation of the swiss franc against the euro. an assessment of monetary conditions can be misleading if it is based on prices, which, like currently the libor, have reached a bound. for this reason, an assessment based on quantities – money and credit – is particularly important in the current circumstances. the monetary base has increased substantially since october 2008, when the financial crisis entered a new phase following the collapse of lehman brothers. we supplied the interbank market with sufficient liquidity to meet burgeoning demand in a climate of uncertainty, in order to prevent any increase in money market rates. since then, precautionary base money demand has declined and we have

news conference berne, 16 june 2022 thomas jordan introductory remarks by thomas jordan ladies and gentlemen it is my pleasure to welcome you to the swiss national bank ’ s news conference. in my remarks, i will begin by explaining our monetary policy decision and our assessment of the economic situation. after that, fritz zurbrugg will present the key messages from this year ’ s financial stability report. andrea maechler will then comment on the situation on the financial markets and the implementation of monetary policy. we will – as ever – be pleased to take your questions afterwards. monetary policy decision i will begin with our monetary policy decision. we have decided to tighten our monetary policy and to raise the snb policy rate and the interest rate on sight deposits at the snb by half a percentage point to −0. 25 %. in doing so, we are seeking to counter increased inflationary pressure. the tighter monetary policy is aimed at preventing inflation from spreading more broadly to goods and services in switzerland. it cannot be ruled out that further increases in the snb policy rate will be necessary in the foreseeable future to stabilise inflation in the range consistent with price stability over the medium term. to ensure appropriate monetary conditions, we are also willing to be active in the foreign exchange market as necessary. the snb policy rate change applies from tomorrow, 17 june 2022. with effect from 1 july 2022, we are also adjusting the threshold factor used to calculate the level of banks ’ sight deposits at the snb exempt from negative interest. the factor will be lowered from 30 to 28. this will ensure that the secured short - term swiss franc money market rates are close to the snb policy rate. page 1 / 5 berne, 16 june 2022 thomas jordan news conference inflation forecast inflation reached 2. 9 % in may and is likely to remain at an elevated level for the time being. the main reason for the higher inflation is the increase in the prices of oil products, food and goods affected by the global supply bottlenecks. however, there has also been a rise in inflation for some other goods and services. the snb ’ s new conditional inflation forecast is based on the assumption that the snb policy rate is −0. 25 % over the entire forecast horizon. the new forecast for the next three years is above that of march ( cf. chart 1 ), and stands at 2. 8 % for 2022, 1. 9 % for 2023, and