SNB's Schlegel says economic outlook has deteriorated, points to US trade policy

Swiss National Bank Chairman Martin Schlegel said on Friday the global economic outlook has deteriorated due to uncertainty stemming from factors including U.S. trade policy.

Schlegel was speaking to Swiss national broadcaster SRF in Washington and said that the Swiss central bank's current interest rate of zero supported the economy and the SNB's goal of maintaining inflation at a rate of between 0 and 2%.

The Swiss economy has been under pressure due to U.S. President Donald Trump's August decision to impose 39% tariffs on Switzerland, shocking businesses and the government.

"The economic outlook is indeed bleak," Schlegel said. "This is primarily due to uncertainty. This is also due to uncertainty surrounding U.S. trade policy."

The global economic slowdown was also being strongly felt in Switzerland by the SNB, Schlegel told the broadcaster.