The Swiss National Bank (SNB) on Thursday raised the benchmark interest rate by 0.75 basis points to 0.5%, bringing the end of the minus rate in Europe.
The 75-basis point increase comes after a rate hike to -0.25% on June 16, the first in 15 years. The central bank had maintained its policy rate of -0.75% since 2015.
The hike is in line with economist expectations, according to a Reuters poll.
Last month, inflation in Switzerland ran at the highest rate in three decades, getting to 3.5%. The Swiss franc has risen strongly since January 2015.
Switzerland was the last country in Europe with a negative policy rate, as the region’s central banks rapidly increased rates to combat growing inflation.