Swiss central bank plans at least 50 bps rate hike in Sept -report

VIENNA, July 16 (Reuters) – The Swiss National Bank is
currently planning to raise interest rates by 50 or 75 basis
points in its next scheduled monetary policy announcement in
September, a Swiss newspaper reported on Saturday, citing one or
more people involved in the matter.

The central bank last month raised its policy rate for the
first time in 15 years and Chairman Thomas Jordan said soon
afterwards that ongoing inflationary pressure meant further
tightening would likely be needed.

Data published last week showed Swiss inflation hit a
29-year high of 3.4% in June, more than economists had expected
and the first time it has surpassed 3% since 2008. It is the
fifth month in a row that inflation has been above the SNB’s
target range of 0-2%.

Newspaper Schweiz am Wochenende said the central bank was
planning a rate hike of 50 basis points to 0.25% from -0.25% at
its next scheduled monetary policy announcement on Sept. 22,
though the situation could yet change between now and then. It
cited one or more unidentified people involved in the matter.

If inflation were to rise further, a rate hike of 75 basis
points is possible, it added.

Some analysts have said the SNB could raise rates before
Sept. 22, closer to the European Central Bank’s planned rate
increase at a Governing Council meeting on Thursday.

Asked about the report, a spokesperson for the SNB said it
does not comment on speculation.
(Reporting by Francois Murphy; editing by Clelia Oziel and
Daniel Wallis)

Source link

Leave a Reply

Your email address will not be published.