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Swiss central bank hikes interest rates by 50 basis points to counter ‘further spread of inflation’

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The Swiss National Bank hikes interest rates again.

FABRICE COFFRINI / Contributor / Getty Images

The Swiss National Bank increased its benchmark interest rate Thursday for the third time this year, taking it to 1%.

Inflation in the country remains well above the Swiss National Bank’s target of 0-2%, but is noticeably below the soaring rates of neighboring European countries. Switzerland’s inflation rate remained steady at 3% last month, having dropped from a three-decade high of 3.5% in August.

The central bank’s 50 basis point hike Thursday came after it unexpectedly raised its policy interest rate for the first time in 15 years in June, taking it from -0.75% to -0.25%. It then entered positive territory with a 75 basis point increase on Sep. 22.

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Charlotte de Montpellier, senior economist at ING, noted that the Swiss National Bank’s total increase of 175 basis points in 2022 compares to an expected 250 basis-point increase in the eurozone and a 425 basis-point hike in the U.S.

This is a breaking news story and will be updated shortly.

Source: CNBC

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