Swiss National Bank Governing Board member Petra Tschudin says artificial intelligence could push inflation higher in the short term, while the franc's recent slide reflects higher interest-rate expectations abroad rather than any shift in Swiss policy. The SNB is holding its policy rate at 0% and stands ready to intervene if the franc swings too far in either direction.
Petra Tschudin, a member of the Swiss National Bank's Governing Board, said artificial intelligence can push inflation higher in the short term, even though the technology's overall effect on prices remains unclear. She told newspaper Finanz und Wirtschaft that investment flows are being partly redirected, which can create shortages such as with chips and push prices up.
AI's price effect cuts both ways
Over the longer term, Tschudin said AI could also lower prices by lifting productivity and making goods cheaper. But because inflation is measured on an annual basis, a lasting deflationary effect would require the price decline to repeat year after year — something she questioned given that productivity gains alone have not historically driven structural deflation.
Franc weakness tied to rates abroad, not Swiss policy
The Swiss franc's recent weakness stems mainly from higher interest-rate expectations abroad, Tschudin said, as wider rate differentials make the franc less attractive to hold. USD/CHF has moved higher on the comments, testing a swing area between 0.8009 and 0.8018.
Still, the SNB remains prepared to intervene directly in foreign exchange markets if the franc moves too far, too fast in either direction, with rapid appreciation flagged as the bigger concern for price stability and exporters.
Rate stays at 0% as inflation forecast holds within target
The SNB's inflation forecast sees annual price rises between 0% and 2% through the first quarter of 2029, with the policy rate currently at 0%. According to Reuters, Tschudin cautioned against reading that forecast as a signal rates will stay unchanged, saying: "If there is new relevant information about inflation, we adjust monetary policy." The SNB projects inflation averaging 0.6% across 2026 and 2027, ticking up to 0.7% in 2028, well inside its price-stability band.
Swiss inflation has stayed low largely because household and business expectations are anchored, and because oil carries less weight in the Swiss consumer basket than elsewhere. That combination gives the SNB room to hold its interest rate at zero — or take it negative — while leaning on the franc to absorb part of the adjustment.
Sources: Reuters, Investinglive, Crypto Briefing
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