Swiss National Bank ends Europe's sub-zero rate era with 75 bps hike

The Swiss National Bank raised interest rates by 75 basis points to bring borrowing costs above zero for the first time in almost eight years, following recent moves in the euro region

Swiss National Bank
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Bastian Benrath and Bryce Baschuk | Bloomberg
The Swiss National Bank raised interest rates by 75 basis points to bring borrowing costs above zero for the first time in almost eight years, following recent moves in the euro region. 

The hike by officials led by Thomas Jordan takes Switzerland’s policy rate to 0.5% and is their most aggressive tightening action in two decades. The move matched the median predictions of economists that had split three ways in a Bloomberg survey before the decision on the size of an increase. 

With officials avoiding an even bigger 100 basis-point hike, the Swiss franc tumbled as much as 1.6% against the euro after the decision to 96.23 centimes. 

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First Published: Sep 22 2022 | 2:26 PM IST

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