The Swiss National Bank made the most limited rate hike of the tightening process with 25 basis points.
The tightening process in Switzerland continued with a more limited move compared to the previous ones.
The Swiss National Bank (SNB) increased the policy rate by 25 basis points to 1.75 percent. The expectation of economists participating in the Bloomberg survey was that the interest rate would be raised to this level.
In the resolution text of the bank, it was stated that the rate hike was taken to respond to rising inflationary pressures. In the text, the message was given that additional interest rate hikes are on the table to ensure price stability in the medium term.
The Swiss National Bank also announced its macroeconomic forecasts along with the interest rate decision.
Accordingly, while the inflation expectation for 2023 was reduced from 2.6 percent to 2.2 percent, it was increased from 2 percent to 2.1 percent for 2024 and from 2 percent to 2.1 percent for 2025. . The forecast for 2026, which was announced for the first time, was 2.1 percent.
Consumer inflation in Switzerland was last announced as 2.2 percent.
The bank continues to expect growth to be around 1 percent for 2023.