ZURICH (Reuters) – The Swiss National Bank (SNB) raised its key rate by a quarter point on Thursday, continuing its campaign of monetary tightening to curb inflation, and it leaves the door open for further hikes.
As expected by economists polled by Reuters, the key rate rose from 1.5% to 1.75%, the highest since April 2002. This is its fifth consecutive increase since the start of the cycle which began last year .
The central bank said in a statement that it was continuing to raise its rate to counter “inflationary pressure, which has increased again in the medium term.”
“It cannot be ruled out that further rate hikes are necessary to ensure price stability in the medium term,” added the SNB.
At 2.2% on one in May, Swiss inflation remains above the target range of 0%-2% set by the bank since February 2022.
The institution also said it was ready to intervene in the foreign exchange market to “guarantee appropriate monetary conditions”.
In recent months, it has disposed of foreign currencies to strengthen the value of the Swiss franc.
(John Revill, French version Laetitia Volga, editing by Kate Entringer)
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