UBS CEO: Not convinced that central banks have won inflation ‎battle

Sergio Ermotti, CEO of the Swiss bank UBS, said on Sunday that he was not convinced that central banks have been able to control inflation.

This came at a time when the US Federal Reserve is heading to cut interest rates next year

According to CNBC, the banking official stated, in his interview with the Swiss newspaper Le Matin, that “one should not try to make expectations about the coming months – it is almost impossible – however, at this stage I am still not convinced.” “Inflation is really under control.”

Ermotti added, “The trend seems favorable, but we must see if it will continue. If inflation approaches the 2% goals in all major economies, central banks’ policies may ease slightly.”

Federal Reserve Chairman Jerome Powell has confirmed that interest rate increases are likely to end in the United States and that lower interest rates are beginning to appear on the horizon, but central banks are committed to their plans to keep policy tight well into next year.

Seven sources told Reuters that the European Central Bank will need to know the extent of the development of inflation and other data between now and its meeting on March 7 at the earliest before considering the type of “accommodative” pivot that the Federal Reserve will take.

In another context, UBS had announced that it would cut 3,000 jobs in Switzerland to cut costs after its acquisition of Credit Suisse – the largest banking merger since the global financial crisis, which was organized by the Swiss state to avoid the collapse of Credit Suisse. .

“We will do our best, based on the principle of merit, using the tools of retirement, early retirement and natural departure,” Ermotti said.

He added: “In fact, the hardest part will be making these choices, and firing people who are in no way responsible for what happened.”