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24-03-2023, 11:12 AM
https://www.cnbc.com/2023/03/23/swiss-ce...rmoil.html
Swiss central bank hikes interest rates by 50 basis points despite Credit Suisse turmoil
The Swiss National Bank increased its policy rate by 50 basis points, taking the rate to 1.5%.
The rate is the fourth consecutive hike and was in line with economist expectations, despite recent turmoil in Switzerland’s banking sector.
The additional monetary tightening has been put in place to counter “the renewed increase in inflationary pressure,” the bank said in a press release.
It also said further rises “cannot be ruled out ... to ensure price stability over the medium term.”
Average annual inflation will average 2.6% in 2023 and 2% in 2024 and 2025, according to a new forecast by the Swiss National Bank, with inflation expected to stand at 2.1% by the end of 2025.
The latest rate hike comes as domestic inflation remains well above the Swiss National Bank’s target of between 0% and 2%.
Swiss inflation rose to 3.4% in February year-on-year, exceeding analyst expectations, although consumer prices are just a fraction of the soaring rates of the country’s European neighbors.
Swiss central bank hikes interest rates by 50 basis points despite Credit Suisse turmoil
The Swiss National Bank increased its policy rate by 50 basis points, taking the rate to 1.5%.
The rate is the fourth consecutive hike and was in line with economist expectations, despite recent turmoil in Switzerland’s banking sector.
The additional monetary tightening has been put in place to counter “the renewed increase in inflationary pressure,” the bank said in a press release.
It also said further rises “cannot be ruled out ... to ensure price stability over the medium term.”
Average annual inflation will average 2.6% in 2023 and 2% in 2024 and 2025, according to a new forecast by the Swiss National Bank, with inflation expected to stand at 2.1% by the end of 2025.
The latest rate hike comes as domestic inflation remains well above the Swiss National Bank’s target of between 0% and 2%.
Swiss inflation rose to 3.4% in February year-on-year, exceeding analyst expectations, although consumer prices are just a fraction of the soaring rates of the country’s European neighbors.
