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Swiss Central Bank Expects Subdued Short-term Economic Growth, Higher Inflation Amid Middle East Conflict

-- The Middle East conflict "significantly" increased the uncertainty surrounding the development of Switzerland's economy and inflation, according to the Swiss National Bank (SNBN.SW).

In a speech delivered on Friday at SNB's shareholder meeting, SNB Governing Board Chairman Martin Schlegel said Swiss economic growth is expected to be "rather subdued" in the short term before seeing an upturn over the medium term "to some extent."

Meanwhile, the SNB forecasts inflation in the country will further increase in the coming quarters, mainly driven by higher energy prices caused by the conflict.

Schlegel, however, noted that the SNB stands ready at any time to adjust its monetary policy whenever needed as it continues to monitor the situation.

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