ZURICH (Reuters) – The Swiss National Bank’s departing chairman Thomas Jordan made his last public appearance on Thursday, with his successor – Vice Chairman Martin Schlegel – pledging to stick to the central bank’s goal of price stability.
The subject of the Jordan’s exit after 12 years leading the central bank was hardly broached at a press conference in Zurich to discuss the SNB’s latest interest rates decision.
Still, with the pressure off after his 42nd monetary policy meeting delivered the SNB’s third rate cut this year, Jordan allowed himself to relax a little and passed more questions to Schlegel, who takes charge on Tuesday.
Schlegel, who joined the SNB in 2003 and has been described in the Swiss media as like a stepson to Jordan, described his departure as the end of an era, but pledged no big changes in policy.
“Our mandate is price stability, and this will remain our mandate,” Schlegel told Reuters in an interview on Thursday. “This is also our priority at the Swiss National Bank.”
Price stability – defined as inflation within a range of 0-2% – has been the key target for Jordan during his leadership, and has been achieved over the last 15 months as the SNB hiked interest rates and allowed the appreciation of the Swiss franc keep the price of imports in check.
Observers have wondered if the change in leadership at the SNB could lead to a change of style, with Jordan seen as the dominant force leading the bank through the scrapping of its minimum exchange rate against the euro and the crash of Credit Suisse.
“I think the important question is what will be the same,” said Schlegel when asked how his approach may differ from Jordan, who was his first boss at the SNB.
“And the same will be the mandate and the focus on price stability.”
After more than 20 years at the SNB, the 48-year-old from Zurich said he was ready for the challenge.
“This will be my eighth position at the SNB, and I was always open to new things and new challenges,” he said. “This was the way I progressed steadily.
“And also a bit of luck is also helpful,” he added.
(Reporting by John Revill; Editing by Toby Chopra)