Although a stronger Swiss Franc has helped to curb inflation in Switzerland, it has impacted domestic businesses.

This is according to the president of the Swiss National Bank (SNB), Thomas Jordan.

“The nominal appreciation of the Franc has lowered inflation,” Jordan said during a banking event in Brig in southern Switzerland.

“The real appreciation was much lower, but the Franc has also appreciated in real terms in 2023. And that hurts, companies feel that,” he commented, going on to add that Switzerland should be relatively unscathed, Swiss Info reports.

“Economists are confident that there won’t be a recession — and we are also confident, otherwise we would forecast one. So no recession, just weak growth,” the SNB president stated.

Jordan’s comments followed on from the Swiss Franc hitting its highest level against the Euro in over 20 years. Although the central bank has permitted a level of appreciation within efforts to curtail inflation, it’s not yet clear whether the SNB is comfortable with the Franc’s ongoing strength, Bloomberg reports.

According to the latest data, the central bank intervened to bolster the Franc throughout September. However, a study undertaken by economists at UBS shows that the SNB is unlikely to have resumed its purchases of foreign currency to drive down the Franc.

The president of the central bank also reiterated previous comments that the SNB forecasts inflation in Switzerland to near the 2% ceiling of this year’s target band but won’t break through that level until 2026.

Economists forecast the Swiss National Bank will begin cutting rates in September.