Swiss National Bank announced a 50 basis points rate hike The Swiss National Bank (SNB) has announced a 50 basis points rate hike, bringing the benchmark interest rate to -0.25%. This move comes as a surprise to many, as the SNB had previously indicated that it would maintain its negative interest rate policy for the foreseeable future. The SNB's decision to raise interest rates is a reflection of the improving economic conditions in Switzerland. The country's economy has been growing steadily, with GDP expanding by 0.7% in the second quarter of 2021. Inflation has also been on the rise, with the consumer price index increasing by 0.6% in August. The SNB's decision to raise interest rates is also a response to the recent decision by the European Central Bank (ECB) to taper its bond-buying program. The ECB's decision has put pressure on the SNB to follow suit, as the Swiss franc has been appreciating against the euro in recent months. The SNB's decision to raise interest rates is likely to have a positive impact on the Swiss economy. Higher interest rates will encourage savers to keep their money in Swiss banks, which will increase the availability of credit for businesses and individuals. This, in turn, will stimulate economic growth and create jobs. However, the SNB's decision to raise interest rates is not without risks. Higher interest rates could lead to a slowdown in the housing market, as mortgage rates increase. This could have a negative impact on the construction industry and the wider economy. Overall, the SNB's decision to raise interest rates is a positive development for the Swiss economy. It reflects the improving economic conditions in the country and will help to stimulate growth and create jobs. However, the SNB will need to monitor the impact of higher interest rates on the housing market and the wider economy, and adjust its policy accordingly.