SNB plans at least 50 bps rate hike in September

“The Swiss National Bank (SNB) is currently planning to raise interest rates by 50 or 75 basis points in its next scheduled monetary policy announcement in September,” Reuters quotes a Swiss newspaper published on Saturday.

Key quotes

The central bank last month raised its policy rate for the first time in 15 years and Chairman Thomas Jordan said soon afterwards that ongoing inflationary pressure meant further tightening would likely be needed.

Newspaper Schweiz am Wochenende said the central bank was planning a rate hike of 50 basis points to 0.25% from -0.25% at its next scheduled monetary policy announcement on Sept. 22, though the situation could yet change between now and then. It cited one or more unidentified people involved in the matter.

If inflation were to rise further, a rate hike of 75 basis points is possible, it added.

Asked about the report, a spokesperson for the SNB said it does not comment on speculation.

USD/CHF extends losses

The news appeared to have helped USD/CHF bears in stretching the previous day’s heavy losses as the quote refreshes intraday low around 0.9755 during the initial hours of Monday’s Asian session.