The Swiss National Bank raised its policy interest rate by 0.75 percentage points on Thursday - only the second rise in 15 years - and said it could not rule out more hikes as it joined other central banks in tightening monetary policy to curb inflation, APA reports citing Reuters.
The SNB increased its policy rate to 0.5% from the minus 0.25% level it set in June. Previously Swiss rates had been frozen at minus 0.75% for years as the SNB tried to tame the appreciation of the safe-haven Swiss franc.
Most economists polled by Reuters had expected the SNB to raise its policy rate to 0.5%.
"It cannot be ruled out that further increases in the SNB policy rate will be necessary to ensure price stability over the medium term," SNB Chairman Thomas Jordan told a news conference.
The SNB is also ready to be active in foreign currency markets, he added. This meant the central bank would purchase foreign currencies to rein in an "excessive appreciation" of the Swiss franc, Jordan said.
"If the Swiss franc were to weaken, however, we would consider selling foreign currency," Jordan said.
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