SNB pushes rates back into positive

Swiss National Bank

As expected, the Swiss National Bank has raised interest rates back into positive territory for the first time in seven years.

The bank pushed rates up 0.75% - so the headline rate is now 0.5%.

In a statement, the bank says the move is to counter rising inflationary pressures. The rate hit 3.5% last month. The bank expects 2.4% next year. 

It says it will steer a path between controlling inflation and the strength of the franc. But it also says it can’t rule out further rises.

The bank also said it would be willing to intervene on the currency markets to keep the level of the franc under control if necessary.

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