The Swiss National Bank announced a 2-yard rate hike and did not rule out the possibility of further rate hikes.

(Associated Press)

[Financial Channel/Comprehensive Report] The Swiss National Bank claimed that the crisis at Credit Suisse had been contained in time. On Thursday (23rd), it announced an interest rate hike of 2 yards to 1.5%, which was in line with market expectations.

The Swiss National Bank said that in order to combat stubborn inflation and the inflationary pressure from abroad increased again, it decided to raise the interest rate by 2 yards, and the interest rate rose to 1.5%, the highest level since October 2008.

The central bank also said: "The possibility of raising interest rates to stabilize prices cannot be ruled out. In order to provide appropriate monetary conditions, we are also willing to actively intervene in the foreign exchange market when necessary to prevent inflationary pressure from rising again."

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The central bank expects the consumer price index (CPI) to be 2.6% in 2023, higher than the previous forecast of 2.4%, and 2.0% in 2024, higher than the previous forecast of 1.8%.

Swiss CPI was 3.4% in February.

Regarding the issue of Credit Suisse, the central bank said that the measures they have taken have stopped the crisis.

Analysts pointed out: "This banking crisis should not affect the decision of the central bank. The ECB chairman has emphasized that there is no trade-off between inflation and financial stability. We agree with this view that any banking problem will not Destroying the tightening cycle is something almost every central bank should be thinking about.”

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