Jordan considered that the escalation of tension in the Middle East threatens energy supplies and supply chains (French)

Swiss Central Bank President Thomas Jordan warned that the conflict in the Middle East and the continuation of the Israeli war on the Gaza Strip could raise major problems for the world's central banks.

Jordan considered that the greatest threat to inflation in the world is the Middle East, as any disruption in supply chains could lead to a skyrocketing energy price and push the inflation rate to rise again.

Jordan added that a lot of energy supplies pass through Egypt's Suez Canal as well as through the Arabian Gulf, so "if things become severely disturbed, it could have a very negative impact on the global economy."

This comes at a time when the Swiss Central Bank reduced the interest rate by a quarter of a point today, Thursday, after an effective battle to combat inflation that lasted two and a half years.

The Swiss Central Bank decided to reduce the interest rate by 25 basis points to 1.5%. The markets had expected the bank to keep the interest rate unchanged. The central bank said it remains ready to intervene in the exchange market if necessary.

The bank added that lowering the interest rate supports economic activity and ensures that monetary conditions remain favorable.

He explained, "We will continue to closely monitor inflation developments, and we will adjust monetary policy again if necessary, to ensure that inflation remains within the range consistent with price stability in the medium term."

The Swiss Central Bank reduced its inflation forecast for the current year to 1.4% from 1.9%, and also lowered its inflation forecast for 2025 from 1.6% to 1.2%.

The Central Bank said that the inflation rate is expected to reach 1.1% in 2026. The bank expected the Swiss economy to grow by about 1% during the current year.

It is noteworthy that the attacks launched by the Yemeni Houthi group on Israeli, American and British ships in the Red Sea and at the Bab al-Mandab Strait in support of Gaza led to most international shipping companies stopping their ships through the Red Sea and diverting their course to the Cape of Good Hope, in the southernmost tip of Africa, which prolongs the journey between... Asia and Europe for about a week, which is a long and expensive way.

Source: Agencies