{"id":1652444,"date":"2022-09-22T06:05:44","date_gmt":"2022-09-22T10:05:44","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1652444"},"modified":"2022-09-22T06:06:20","modified_gmt":"2022-09-22T10:06:20","slug":"swiss-national-bank-exits-negative-rates-era-with-0-75-hike","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/swiss-national-bank-exits-negative-rates-era-with-0-75-hike\/","title":{"rendered":"Swiss National Bank exits negative rates era with 0.75% hike"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fswiss-national-bank-exits-negative-rates-era-with-0-75-hike%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1652444&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By John Revill and Silke Koltrowitz<\/p>\n<p>ZURICH (Reuters) -The Swiss National Bank raised its policy interest rate by 0.75 percentage point on Thursday \u2013 only the second rise in 15 years \u2013 and said it could not rule out more hikes as it joined other central banks in tightening monetary policy to curb inflation.<\/p>\n<p>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. <\/p>\n<p>Most economists polled by Reuters had expected the SNB to raise its policy rate to 0.5%.<\/p>\n<p>\u201cIt cannot be ruled out that further increases in the SNB policy rate will be necessary to ensure price stability over the medium term,\u201d SNB Chairman Thomas Jordan told a news conference.<\/p>\n<p>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 \u201cexcessive appreciation\u201d of the Swiss franc, Jordan said. <\/p>\n<p>\u201cIf the Swiss franc were to weaken, however, we would consider selling foreign currency,\u201d Jordan said.<\/p>\n<p>Swiss government bond yields fell, reversing course following an initial spike, while the franc dropped broadly, falling against the dollar, euro and pound.<\/p>\n<p>Jordan noted that the franc had risen by around 7% since the SNB\u2019s last rate hike in June, a development which had helped dampen inflation in Switzerland.  <\/p>\n<p>The SNB\u2019s decision to increase rates followed rising prices in Switzerland and hawkish moves by other central banks that are trying to keep a lid on resurgent inflation caused by spiralling energy costs, tight labour markets and supply chain bottlenecks.<\/p>\n<p>The U.S. Federal Reserve further increased its benchmark rate by 75 basis points on Wednesday, its third straight hike of that magnitude, while the Bank of England was also expected to increase its rate by 50 basis points later on Thursday.<\/p>\n<p>The European Central Bank this month also raised its deposit rate by 75 basis points and promised further hikes to combat spiralling inflation, which hit 9.1% in August driven by higher fuel and energy costs.<\/p>\n<p>Although Swiss inflation remains modest in comparison, it reached a higher-than-expected 3.5% in August, the seventh month in a row that it has exceeded the SNB\u2019s target range of 0-2% and its highest level since August 1993.<\/p>\n<p>The SNB is going to use SNB bills and repo transactions to absorb liquidity to ensure short-term money market rates remain close to the now-positive policy rate, governing board member Andrea Maechler said. It also is rolling out tiered remuneration of sight deposits that banks hold at the SNB. <\/p>\n<p>Karsten Junius, an economist at J.Safra Sarasin, said the SNB\u2019s hike was accompanied by a more dovish message regarding further rises compared to the messages from other central banks. <\/p>\n<p>\u201cThe SNB says that \u2018it cannot be ruled out that further increases of the SNB policy rate will be necessary\u2019 while all other central banks more or less announce ongoing tightening,\u201d he said.<\/p>\n<p>\u201cThe language by the SNB together with an inflation forecast that remains below 2% in 2024 (and only increases to 2% in Q2 2025 again) make it quite unlikely that the SNB is planning for another 75 bp rate hike in December again. At this stage we would consider 50 bp at most more likely.\u201d  <\/p>\n<p> (Reporting by John Revill; editing by Michael Shields and Mark Heinrich)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/swiss-national-bank-exits\/swiss-national-bank-snb-building-in-bern\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8L0B4-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8L0B4-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By John Revill and Silke Koltrowitz ZURICH (Reuters) -The Swiss National Bank raised its policy interest rate by 0.75 percentage point on Thursday \u2013 only the second rise in 15<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1652444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1652444","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1652444"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1652444\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1652444"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1652444"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1652444"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}