The Swiss National Bank (SNB) has hiked the key deposit rate by 50 basis points to 1.50%. Economists at Commerzbank expect a further 25 bps increase in the key interest rate in June.

SNB is determined to get inflation back under control

“The Swiss central bank is showing its determination to get inflation back under control. At its meeting today, it raised its key interest rate by a further 50 basis points to 1.5%. In view of the recent market turbulence, this was not a foregone conclusion.”

“The SNB does not rule out the possibility that additional rate hikes will be necessary to ensure price stability in the medium term.”

“We expect a further rate hike of 25 bps in June.”