Switzerland’s central bank raises the key interest rate by 0.75 percentage points
On Thursday, the Swiss central bank SNB raised the key interest rate by 0.75 percentage points to 0.50 percent, thereby leaving the negative interest rate behind.
In a press release writes the SNB that it will be necessary with further interest rate increases in the medium term. The SNB further states that it is prepared to be active in the foreign exchange market if deemed necessary.
Inflation in the Alpine region was 3.5 percent in August and is expected to remain at an elevated level until further notice.
The Swiss franc clearly weakened against the Swedish krona after the interest rate announcement and went from the level of SEK 11.50 per Swiss franc to around SEK 11.36 per Swiss franc.