Swiss central bank raises key interest rate and says more hikes can't be ruled out

FRANKFURT, Germany (AP) — Switzerland's central bank raised its key interest rate 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% 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% was “countering inflationary pressure which has increased again over the medium term.”

Central banks around the world have sharply raised interest rates to combat an outbreak of inflation triggered by the rebound from the pandemic, higher energy prices and Russia's invasion of Ukraine.

The

Bank of England

and

Turkey's central bank

also are both holding rate meetings Thursday.