By Xavier Fontdegloria
Switzerland's National Bank on Thursday increased interest rates for a third consecutive time in as many meetings, but slowed the pace of rises as inflation pressures moderated.
The Swiss central bank increased its policy rate by 50 basis points, to 1.0%, after a larger increase of 75 basis points at its September meeting.
Swiss inflation came in at 3% in November, easing from the 3.5% peak registered in August but still above the SNB target range of between 0% and 2%. Swiss inflation is well below that of neighboring eurozone, which stood at 10% in November.
The Swiss central bank said inflation is likely to remain elevated, and that further interest-rate rises can't be ruled out to ensure price stability over the medium-term. In its new inflation forecasts, the SNB puts average annual inflation at 2.9% for 2022, 2.4% for 2023 and 1.8% for 2024.
The SNB added it is "willing to be active" in the foreign exchange market to keep control of the currency.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
12-15-22 0354ET
