SNB’s Schlegel Flags Global Uncertainty from Middle East Conflict, Signals Policy Readiness

SNB Chair Martin Schlegel warned that the Middle East conflict is injecting significant global uncertainty, with rising energy prices likely to push inflation higher and temporarily slow growth. While the SNB cannot control external shocks, Schlegel stressed the bank’s readiness to adjust monetary policy “at any time” and reiterated its institutional independence and capacity to maintain domestic stability. Market implications: comments signal a potentially hawkish SNB response to imported inflation, which could support the Swiss franc and weigh on USD/CHF. Traders may price in a greater likelihood of SNB policy action, increasing short-term risk-off positioning and volatility in FX and energy-related markets.