Swiss central bank raises key rates

Frankfurt: Switzerland's central bank raised its key interest rate on Thursday as it seeks to combat inflation and said “it cannot be ruled out” that more hikes will be necessary.

Inflation declined significantly to 2.2 per cent in May but is above the target set by the Swiss National Bank, which warned that price pressures persist and would make themselves felt in coming months without action. It said the decision to hike its key rate by a quarter-percentage point to 1.75 per cent was “countering inflationary pressure which has increased again over the medium term”.