The Swiss National Bank views economic developments in Switzerland for the rest of 2005 with "a certain optimism" and expects a pickup in growth, SNB board member Philipp Hildebrand said on Sunday.
Hildebrand, speaking in an interview in the newspaper SonntagsZeitung, said price stability was guaranteed for the longer term, although there were other global risks - such as the US current account deficit - that caused worries.
"We are in the fortunate position that at the moment we hardly have to entertain any fears on the inflation front," Hildebrand was quoted as saying. "Price stability is guaranteed for the longer term."
Hildebrand said robust growth in the United States and Asia plus positive indicators from Europe gave the Swiss central bank grounds for optimism on economic growth.
"In Switzerland, we can view the second half of the year with a certain optimism," he said. "We maintain our scenario whereby the economy will pick up."
But protectionist trends and the US current account deficit posed a risk to that scenario, Hildebrand said, calling on Europe to energise economic growth and on the United States to get its budget in order.
Hildebrand said the Chinese central bank's move to liberalise its currency regime and revalue the yuan was a historic step, which had several possible implications for the Swiss economy.
If the currency basket to which the yuan is attached - its components remain unknown - contains some proportion of Swiss francs, that could help explain why yields remain so low, he said.
Key central bankers have wondered aloud recently why long-term yields remain so low, with some suggesting that demand from oil exporters awash in petrodollars or strategic buying by central banks such as in China were playing a role.
Turning to the single European currency, Hildebrand called Italy's debate on whether to exit the euro area "nonsense".
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