The Swiss central bank raised interest rates by 75 basis points to get rid of the negative rates that have been in place since January 2014.
Interest rates in Switzerland hit 0.5% after a rate hike that was in line with expectations, a move considered the toughest for the SNB in almost two decades. Interest rates were negative before the latest increase, at -0.25%.
Switzerland’s interest rate hike is the second in a year since the Swiss Central Bank raised interest rates by 50 basis points last June to -0.25% instead of -0.75%.
The Swiss central bank’s decision put an end to negative interest rates on the old continent, leaving the BOJ alone as the BOJ kept its interest rate unchanged at -0.1% at its meeting today. Following the decision, the Swiss franc fell 1.8% against the euro to 96.79 pence.
The move came after several banks announced they were raising their interest rates as the US Federal Reserve raised interest rates by 75 basis points and the Bank of England raised its interest rates by 50 basis points.
Source: El Iktisad
