Swiss National Bank Raises Policy Rate by 0.5 Percentage Points for the First Time in 15 Years

The Swiss National Bank (SNB) raised its policy interest rate for the first time in 15 years on the 16th (local time).

According to major foreign media, the Swiss National Bank increased the policy interest rate, which had been maintained at -0.75% since 2015, to -0.25%.

This is the first time the Swiss National Bank has raised its policy interest rate since September 2007.

The move was influenced by the U.S. Federal Reserve (Fed) implementing a tightening policy, including raising the benchmark interest rate by 0.75 percentage points the day before to respond to soaring inflation.

The European Central Bank (ECB) also raised its benchmark interest rate by 0.25 percentage points in July on the 9th and announced plans to raise it again in September.

The Swiss National Bank explained in a statement that "a tighter monetary policy is intended to prevent inflation from spreading more broadly to products and services within Switzerland."

It also added that it cannot rule out the possibility of further policy rate hikes if necessary.

Meanwhile, the Swiss National Bank raised its inflation forecast for this year from 2.1%, predicted in March, to 2.8%.

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