Why is Swiss National Bank allowing Swiss Franc to appreciate?

Thomas Jordan Chairman of SNB in this speech discusses SNB’s approach to Russia-Ukraine war.

This bit on exchange rates is interesting:

At our most recent monetary policy assessment in March, we decided to leave our policy rate unchanged at −0.75%, and to maintain our willingness to intervene in the foreign exchange market as necessary. However, we had already stressed in December that we would allow the
Swiss franc to appreciate to a certain extent. So how do we put our current monetary policy in context?

We intervene in the foreign exchange market when strong upward pressure on the Swiss franc would lead to persistently negative inflation and weigh heavily on the economy. However, we do not react mechanically to every instance of upward pressure. If you have followed the
Swiss franc closely over the past months, you will know that it has gradually appreciated and has at times even fallen below parity to the euro.

We have quite deliberately allowed this to happen. The reason is that inflation abroad is significantly higher than in Switzerland. This means that our economy can withstand the franc being stronger in nominal terms. The higher prices abroad and the nominally stronger Swiss franc roughly balance one another out, and there has therefore been hardly any change in the real exchange rate over the past quarters. Without the nominal appreciation of recent months, our monetary policy would have become more expansionary.

Given the current development of inflation, that would not have been appropriate. Allowing the appreciation helped us to keep inflation comparatively low in Switzerland.

Real vs nominal..Each economy to its own..

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