HomeFinancial MarketsSwiss National Bank Warns of Further Rate Hikes

Swiss National Bank Warns of Further Rate Hikes

Swiss National Bank (SNB) Chairman Thomas Jordan warned on Saturday that the central bank is likely not done with its interest rate hiking agenda. This comes as Swiss inflation remains stubbornly high despite the SNB’s recent hikes.

The SNB raised its interest rates by 25 basis points on Thursday, thereby extending its campaign to bring Switzerland’s inflation rate down below its 2% target.

During an interview with Swiss broadcaster SRF, Jordan also brought up the recent takeover of the struggling Credit Suisse by major local rival UBS. As part of the government-orchestrated deal, UBS was awarded access to more than 200 billion Swiss francs ($223 billion) in financial guarantees.

With UBS already paying back an undisclosed amount to the Swiss government, Jordan revealed that the remaining outstanding payment is expected to be made in installments over the next few months.

In its first-quarter earnings report, Credit Suisse revealed that its net borrowings from the SNB amounted to 108 billion Swiss francs following its 60 billion Swiss franc repayment completed in the first quarter.

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