Switzerland: Central bank enacts biggest-ever hike to key rate

Source: Seattle Times

“Switzerland’s central bank carried out the biggest hike ever to its key interest rate Thursday, following the U.S. Federal Reserve and other central banks around the world in aggressive moves to clamp down on inflation. The Swiss National Bank could not rule out that further increases beyond the rise of three-quarters of a percentage point ‘will be necessary to ensure price stability over the medium term,’ said Thomas Jordan, chairman of SNB governing board. … The Swiss rate increased from minus 0.25% to 0.5%, ending several years of negative interest rates — a testament to the stable growth, low-inflation environment, coupled with Switzerland’s appeal as a safe haven for assets. In essence, that negative interest rate environment meant that people who parked assets in Switzerland paid for the privilege, a counterintuitive idea for many investors who might expect a return on their savings.” (09/22/22)