Economics
SNB Surprises With First Interest-Rate Hike in 15 Years
- Says further tightening may be needed, drops focus on franc
- Central banks around the world are acting to fight inflation
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The Swiss National Bank unexpectedly increased interest rates for the first time since 2007, shifting away from a battle to tame a stronger currency to focus on inflation that threatens to get out of hand.
It raised its policy rate by 50 basis points to -0.25%, a dramatic move that sent the franc surging more than 2% against the euro, bringing parity between the two currencies into view.