Switzerland raises interest rate to 1%

On Thursday, the Swiss National Bank (SNB) announced an increase in its policy rate by 50 basis points to 1%. The bank noted that further rate hikes may be required to ensure price stability over the medium term. The SNB stated that inflation had declined slightly in the past few months, reaching 3% in November, but that it was still above the bank's target range. They also mentioned that inflation is expected to remain higher in the short-term, with an average of 2.9% in 2022 and 2.4% in 2023.