The SNB is tightening its monetary policy further and is raising the SNB policy rate by 0.5 percentage points to 1.5%. In doing so, it is countering the renewed increase in inflationary pressure. It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term. To provide appropriate monetary conditions, the SNB also remains willing to be active in the foreign exchange market as necessary. For some quarters now, the focus has been on selling foreign currency. The SNB policy rate change applies from tomorrow, 24 March 2023. Banks’ sight deposits held ... (full story)

The Swiss National Bank raised its benchmark interest rate by 50 basis points Thursday, taking it to 1.5%. The rate is the fourth consecutive hike and the change in policy rate is in line with analyst expectations. 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. The country’s interest rates first moved out of negative territory in September, with the Swiss ... (full story)