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6/16, 9:36 AM (Source: TeleTrader)
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Swiss National Bank raises key rate by 50 bps

The Swiss National Bank increased its benchmark interest rate by 50 basis points to -0.25% in the policy assessment published on Thursday as part of its strategy to combat rising consumer prices. "It cannot be ruled out that further increases in the SNB policy rate will be necessary for the foreseeable future to stabilize inflation in the range consistent with price stability over the medium term," the central bank added in the report.

Commenting on the inflation outlook, the bank unveiled a new forecast for the next three years. With the latest policy decision, Swiss inflation is expected to land from the current 2.9% to 2.8% at the end of this year, while lowering further to 1.9% in 2023 and 1.6% in 2024. "Owing to the increased prices for energy and food, coupled with the supply bottlenecks, inflation is likely to remain high for some time," the SNB concluded.

Baha Breaking News (BBN) / ND