Swiss National Bank raises interest rate for fifth time running
The Swiss National Bank (SNB) raised its policy interest rate by a quarter-percentage point to 1.75% on Thursday as seeks to combat inflation. It said “it cannot be ruled out” that more hikes will be necessary.
This content was published on
2 minutes
Reuters/AP/sb
Español
es
El Banco Nacional Suizo vuelve a subir los tipos de interés
The SNB increased its policy rate and the rate it charges on sight deposits to 1.75% from the 1.5% level set in March, its fifth increase in a row since the bank started its hiking cycle last year.
Inflation declined significantly to 2.2% in May but remains above the target set by the SNB, which warned that price pressures persist and would make themselves felt in coming months without action.
It said in a statementExternal link that the decision to raise its key rate by a quarter-percentage point to 1.75% was “countering inflationary pressure which has increased again over the medium term”.
Central banks around the world have sharply raised interest rates to combat an outbreak of inflation triggered by the rebound from the pandemic, higher energy prices and Russia’s invasion of Ukraine.
“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 SNB said.
The central bank said it also remained ready to intervene in currency markets to maintain price stability, which it defines as an inflation rate of 0-2%.
In recent months the SNB has been selling foreign currencies to boost the value of the Swiss franc, whose strength has reduced the effect of more expensive imports.
In the past 12 months the SNB has switched focus from tackling the high value of the Swiss franc to combating price rises which it has said run the risk of becoming entrenched and harder to shift.
Popular Stories
More
Foreign affairs
European nations snub Swiss-made weapons over Ukraine restrictions
Swiss President remembers victims of October 7 attack
This content was published on
One year after the attack on Israel by Hamas, Swiss President Viola Amherd remembered the victims and called for the release of all hostages.
Lausanne public transport to go all-electric by 2030
This content was published on
The company that runs public transport in the Swiss city of Lausanne intends to convert its entire fleet of vehicles to electric power within the next five years.
UBS lowers growth forecasts for Swiss economy in 2025
This content was published on
Economists at UBS have lowered their growth forecasts for Switzerland's economy next year, citing a slowdown in the eurozone as a factor.
Russia opens criminal case against Swiss journalist for crossing Kursk border
This content was published on
The Russian secret service has opened proceedings against Swiss journalist Kurt Pelda for crossing the state border in the Kursk region.
Swiss mushroom pickers face shortage of poison antidote
This content was published on
Tox Info Suisse is urging amateur mushroom pickers to have their pickings checked amid a current shortage of the antidote used to treat mushroom poisoning.
Swiss skies too cloudy for spotting aurora borealis
This content was published on
The northern lights were visible on Sunday night only near the border with Austria. The Swiss sky was too overcast to observe the lights.
Memorial service held in Bern for October 7 attack victims
This content was published on
Over 200 people commemorated the victims of the Hamas attack on Israel one year ago in Bern's synagogue on Sunday evening.
Swiss food staples up to 20% more expensive from last year
This content was published on
Inflation continues to hit Swiss consumers, with the price of some food staples, such as margarine and cooking oils, rising by 20% in March on an annual basis.
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.