(MENAFN) On Thursday, the Swiss National Bank announced that it would raise its policy interest rate by 50 basis points to 1.5 percent in response to ongoing inflationary pressure. This marks the fourth consecutive hike in policy interest rates by the central bank. In its statement, the bank highlighted that the annual inflation rate was at 3.4 percent in February, which has prompted the need for such measures to combat the rising inflation.
The global financial markets were recently shaken by the collapse of Swiss Lender Credit Suisse, which has raised concerns about the stability of the banking sector. However, in a surprising move, Credit Suisse's rival UBS has announced that it will acquire the struggling bank for 3 billion francs (USD3.24 billion) with the support of the Swiss government.
To address the ongoing financial crisis, the central bank is taking measures to provide large amounts of liquidity in Swiss francs and foreign currencies. While the decision to raise policy interest rates has been met with some criticism, the Swiss National Bank remains committed to taking necessary steps to stabilize the economy and maintain financial stability in the country.
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