The Swiss National Bank (SNB) will raise the key interest rate by 0.5 percentage points, as announced on Thursday. The main interest rate is currently 1.00 percent. The SNB is tightening interest rates for the third time this year.
The US Federal Reserve set the course for further rate hikes in Switzerland on Wednesday. It increased the main interest rate by 0.5 percentage points. This came after the Fed increased interest rates by 0.75 percentage points four times. But big increases in US interest rates are paying off: In November, inflation fell from 7.7 percent to 7.1 percent—a surprisingly strong drop. It was still 9.1 percent in June. SNB, on the other hand, has not yet taken its foot off the gas in the fight against inflation. Inflation in Switzerland was 3 percent in November.
The European Central Bank (ECB) will follow the interest rate decision on Thursday afternoon.
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