The Swiss National Bank announced on Thursday that it will raise its policy rate by 25 basis points to 1.75%.
The central bank said that more rate hikes cannot be ruled out and that "in the current environment, the focus is on selling foreign currency." Based on the new interest rate, the central bank's inflation projections estimate that price growth in Switzerland will stand at 2.2% in both 2023 and 2024 and at 2.1% in 2025.
The SNB noted that economic growth is seen at around 1% in 2023. "Unemployment will probably rise slightly, and the utilization of production capacity is likely to decline somewhat," the central bank added.
