Swiss Central Bank Hikes Interest Rates Despite Credit Suisse Turmoil

The Swiss National Bank (SNB) raised its interest rates by 50 basis points despite the turmoil over the Credit Suisse collapse. The SNB made the announcement on March 23, bringing its borrowing rate to 1.5 percent, for its fourth consecutive hike, which was is in line with analysts’ predictions Swiss interests rates were negative 75 percent until June, when the central bank started to hike interest rates for the first time in 15 years due to rising inflation. The country’s interest rates first moved out of negative territory in September with a 75 basis-point hike. Monetary policy was even tightened further this month to counter “the renewed increase in inflationary pressure,” the central bank said in a press release. The bank stated that further tightening “cannot be ruled out … to ensure price stability over the medium term.”...