ZURICH: Fighting inflation and ensuring price stability is “absolutely essential” Swiss National Bank Chairman Thomas Jordan told a panel at the World Economic Forum in Davos.

Price stability, which the SNB defines as prices rising by 0-2%, was still important, Jordan said, with monetary policy around the world in previous years probably being too expansionary in hindsight.

Swiss central bank faces record loss

The SNB raised its policy interest rate three times last year to shift from -0.75% to 1% to tackle the inflation which was high by Swiss standards. Swiss inflation dipped to 2.8% in December, down from a 3.0% rate in November.