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Swiss central bank announces big rate hike in inflation fight

The Local Switzerland
The Local Switzerland - [email protected] • 22 Sep, 2022 Updated Thu 22 Sep 2022 09:48 CEST
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Swiss National Bank's headquarters in the Swiss capital Bern. (Photo by Fabrice COFFRINI / AFP)

The Swiss National Bank (SNB) raises the key interest rate by 0.75 percentage points, putting it back in positive territory at 0.5 percent.

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"The rate change applies from tomorrow, September 23rd 2022", SNB said in a press release on Thursday.

It added that "inflation [in Switzerland] rose to 3.5 percent in August and is likely to remain at an elevated level for the time being".

The latest rise in inflation is principally due to higher prices for goods, especially energy and food, according to the bank.

https://twitter.com/SNB_BNS/status/1572850713730097152?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1572850713730097152%7Ctwgr%5E9599b728d52e4dbdb0936ac54db1e3a0f94706ed%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.bluewin.ch%2Fde%2Fnews%2Fwirtschaft-boerse%2Fsnb-erhoeht-leitzins-um-0-75-prozentpunkte-auf-0-5-prozent-1387257.html

The SNB's forecast for the evolution of inflation is, however, positive.

It forecasts that the rate will drop to 2.4 percent in 2023 and and 1.7 percent for 2024.

"Without today’s SNB policy rate increase, the inflation forecast would be significantly higher", the bank said.

In mid-June, the SNB tightened interest rates by half a percentage point for the first time in 15  years. Since then, inflation in Switzerland has continued to rise. For August 2022, the statisticians reported inflation of 3.5 percent, after 3.4 percent in June and July.

 

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The Local Switzerland 2022/09/22 09:48

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