Janom Steiner defends prioritizing stability over climate and diversity for the SNB

During the General Meeting of the Swiss National Bank, attendees are eager to share their opinions on what changes the Bank should make. However, Bank Council President Barbara Janom Steiner has shifted the focus by accusing critics of being reckless and irresponsible. Suggestions such as a higher inflation target, dividend distributions despite losses, a larger board of directors, and investing in Bitcoin instead of gold are met with skepticism.

The three-member Board of Directors, led by President Thomas Jordan, is responsible for the National Bank’s monetary policy. The Board is known as the Bankrat and is chaired by Barbara Janom Steiner. Outgoing President Jordan explains the Bank’s narrow mandate, which is price stability considering the economy, and emphasizes the importance of the Bank’s independence. He also mentions that the Bank does not invest in Bitcoin due to liquidity and stability concerns.

Janom Steiner criticizes the demands made by the Bank’s critics, calling them frivolous and driven by special interests. She emphasizes that the Bank must conduct monetary policy in the overall interest of the country, as outlined in the Federal Constitution. While climate activists demonstrate outside the meeting, Janom Steiner reaffirms the Bank’s focus on its mandate and warns against making reforms for the sake of reforms.

The Swiss National Bank has been successful in maintaining stability even during crises due to its steadfast approach. President Jordan emphasizes the importance of evaluating changing conditions and their effects on monetary policy. With Jordan’s upcoming resignation, a generational change in the board of directors represents an opportunity for more openness and discourse about the Bank’s policies.