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Switzerland plans to raise interest rates by at least 0.5% in September

Switzerland’s central bank plans to raise interest rates by 50 or even 75 basis points at its next monetary policy meeting in September, a Swiss newspaper said, citing people familiar with the matter.

As Reuters points out, Switzerland’s central bank last year raised interest rates for the first time in 15 years, with President Thomas Jordan saying continued inflationary pressures meant further tightening was likely needed.

Data released last week showed inflation in Switzerland hit a 29-year high of 3.4 percent in June, beating analysts’ estimates and the first time it has been above 3 percent since 2008.

Against this backdrop, according to the Schweiz am Wochenende newspaper, the country’s central bank plans to raise interest rates on September 22 by 50 basis points to 0.25% from -0.25% now, with its sources pointing out that situation may change by then.

If inflation rises further, a rate hike of 75 basis points will be considered, people familiar with the matter told the newspaper.

Source: Capital

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