Swiss central bank hikes interest rate to counter ‘spread of inflation’
The SNB said it was raising its benchmark interest rate to counter “increased inflationary pressure and a further spread of inflation”.
Keystone / Anthony Anex
The Swiss National Bank (SNB) increased its benchmark interest rate on Thursday for the third time this year, taking it to 1%.
This content was published on
2 minutes
Keystone-SDA/Reuters/sb
Español
es
Suiza sube tasa de interés oficial para contrarrestar “propagación de la inflación”
The SNB increased its policy rate and the rate it charges on sight deposits to 1.0% from the 0.5% level set in September. The move follows a 0.5% interest rate hike by the United States Federal Reserve on Wednesday.
The Bank of England and the European Central Bank also raised rates by 0.5% on Thursday.
Switzerland’s inflation rate remained steady at 3% last month, having dropped from a three-decade high of 3.5% in August. This is below the soaring rates of neighbouring European countries but it remains well above the SNB’s target of 0-2% and is expected to remain elevated.
The SNB said it was raising its benchmark interest rate to counter “increased inflationary pressure and a further spread of inflation”.
“It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term,” the bank said in a statementExternal link on Thursday.
The bank added that it was willing to “be active in the foreign exchange market as necessary” to stop the Swiss franc from appreciating too much against other currencies.
More
More
Explainer: how Switzerland is dealing with rising prices
This content was published on
Inflation is comparatively moderate in Switzerland, but rising energy and food prices are putting a strain on small budgets.
The interest rate hike, which comes as other central banks also tighten policy, took Swiss interest rates to their highest level since the global financial crisis, 14 years ago.
The bank said the increase has been introduced as global growth momentum has continued to slow down. “At the same time, inflation in many countries is markedly above central banks’ targets. Accordingly, numerous central banks have further tightened their monetary policy,” it said.
Swiss interest rates moved into positive territory in September for the first time since 2015. The SNB has now raised rates three times this year.
More
More
The positives and negatives of Swiss interest rates
This content was published on
The winners and losers of the Swiss central bank’s latest monetary policy decision.
In banking, Switzerland can’t afford ‘model pupil syndrome’, says UBS CEO
This content was published on
UBS Group CEO Sergio Ermotti says competition between banks in Switzerland will continue even following the takeover of rival Credit Suisse.
Switzerland to chair international forum on migration
This content was published on
Switzerland will chair the Intergovernmental Consultations on Asylum, Refugees and Migration (IGC) in 2025, the government announced on Monday.
Y2K anniversary: Swiss preparations to dodge the millennium bug
This content was published on
The idea that computers around the world could fail at midnight on December 31, 1999 put many on alert. In the end, not much went wrong.
‘Switzerland needs a stable relationship with its neighbours,’ says foreign minister
This content was published on
"We are once again entering an 'America first, Europe first, Switzerland first' logic," Ignazio Cassis said in an interview published Monday.
Jimmy Carter supported Swiss-backed peace effort for Middle East
This content was published on
Former United States President Jimmy Carter maintained close ties with Switzerland and had expressed gratitude for the country's efforts on the Geneva peace initiative.
Swiss cowfighting championship at risk of being cancelled
This content was published on
Despite growing popularity, the national Hérens cowfighting championship could be cancelled in 2025 for lack of organisers.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
OECD lowers growth forecast for Swiss economy
This content was published on
The Organisation for Economic Development and Cooperation expects Swiss GDP to grow by 2.1% in 2022, not 2.5% as forecasted.
SNB board member says more rate hikes may be needed
This content was published on
The Swiss National Bank (SNB) may raise interest rates again to fight Swiss inflation, says governing board member Andrea Maechler.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.