SNB raise rates

Friday, 17 June 2022 06:30

In a surprise move, the Swiss National Bank has raised interest rates from minus point 75% to minus point 25%.

It’s the first-time rates have climbed since September 2007.

The franc strengthened on the foreign exchange markets as traders hadn’t been expecting a rate rise.

The central bank says it was necessary to counter the threat of inflation – and it’s not ruling out further rises.

The US Federal Reserve and the European Central Bank have also raised rates this week.

Swiss inflation hit 2.9% last month. The franc's status as a safe haven is countering the worst inflationary pressures.

The bank says it remains positive over the outlook for the Swiss economy and expects a GDP rise of 2.5% this year.

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