Swiss Central Bank Raise Rate By 75bps, Ending Europe’s Subzero Rate Era

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.