Swiss central bank plans at least 50 bps rate hike in September, report says

The Swiss Nationwide Financial institution (SNB) brand is pictured on its constructing in Bern, Switzerland April 2, 2022. REUTERS/Arnd Wiegmann//File Picture

VIENNA, July 16 (Reuters) – The Swiss Nationwide Financial institution is at the moment planning to lift rates of interest by 50 or 75 foundation factors in its subsequent scheduled financial coverage announcement in September, a Swiss newspaper reported on Saturday, citing a number of individuals concerned within the matter.

The central financial institution final month raised its coverage charge for the primary time in 15 years and Chairman Thomas Jordan mentioned quickly afterwards that ongoing inflationary strain meant additional tightening would doubtless be wanted.

Knowledge printed final week confirmed Swiss inflation hit a 29-year excessive of three.4% in June, greater than economists had anticipated and the primary time it has surpassed 3% since 2008. It’s the fifth month in a row that inflation has been above the SNB’s goal vary of 0-2%. learn extra

Newspaper Schweiz am Wochenende mentioned the central financial institution was planning a charge hike of fifty foundation factors to 0.25% from -0.25% at its subsequent scheduled financial coverage announcement on Sept. 22, although the scenario may but change between from time to time. It cited a number of unidentified individuals concerned within the matter.

If inflation had been to rise additional, a charge hike of 75 foundation factors is feasible, it added.

Some analysts have mentioned the SNB may increase charges earlier than Sept. 22, nearer to the European Central Financial institution’s deliberate charge enhance at a Governing Council assembly on Thursday.

The SNB was not instantly obtainable for remark.

Reporting by Francois Murphy; enhancing by Clelia Oziel

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