By Scott Kanowsky
Investing.com -- The Swiss National Bank has raised interest rates by 50 basis points on Thursday, running counter to some economists' expectations, but keeping in step with aggressive tightening of policy from other central banks around the world.
The SNB's policy rate now stands at -0.25%, with the central bank adding that further rises in borrowing costs "cannot be ruled out" in the foreseeable future.
In a statement, the SNB said the hike is designed to combat soaring inflation, which hit a 14-year high in Switzerland in May. It added that global economic growth has also slumped recently due to the higher prices, as well as uncertainty from the war in Ukraine and COVID lockdowns in China.
The Swiss franc strengthened against the dollar after the decision, rising by 1.25% to $1.02 as of 0355 EST (0755 GMT).