The Swiss National Bank has increased its benchmark interest rate for the third time this year, taking it to 1%.
"It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term," a press release from the central bank said.
"To provide appropriate monetary conditions, the SNB is also willing to be active in the foreign exchange market as necessary," it added.In announcing its latest rate hike, the Swiss National Bank noted the global slowdown in growth and that inflation is "markedly above" central banks' targets in many countries — and it doesn't expect this to change any time soon.
"The SNB expects this challenging situation to persist for now. Global economic growth is likely to be weak in the coming quarters, and inflation will remain elevated for the time being," the press release said. In the medium term, however, the bank expects inflation to settle at more moderate levels as countries continue to tighten monetary policy.
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
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