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

Published 07/16/2022, 08:36 AM
Updated 07/16/2022, 04:25 PM
© Reuters. FILE PHOTO: The Swiss National Bank (SNB) logo is pictured on its building in Bern, Switzerland April 2, 2022. REUTERS/Arnd Wiegmann//File Photo

VIENNA (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.

© Reuters. FILE PHOTO: The Swiss National Bank (SNB) logo is pictured on its building in Bern, Switzerland April 2, 2022. REUTERS/Arnd Wiegmann//File Photo

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.

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