Swiss National Bank Chairman Hints at Further Interest Rate Hikes
Thomas Jordan, Chairman of the Swiss National Bank (SNB), has indicated that more interest rate hikes may be in the future during an interview with Swiss broadcaster SRF. The SNB recently raised its policy interest rate by 25 basis points as part of a strategy to alleviate high inflation and bring it below 2%.
Rescue of Credit Suisse and Expected Loan Repayment
Jordan also mentioned the rescue of Credit Suisse, which was acquired by rival Swiss bank UBS, and received access to more than 200 billion Swiss francs ($223 billion) in financial guarantees. While not specifying how much has been repaid, Jordan expects a significant portion of the remaining amount to be paid back within the next few months. As of their first-quarter earnings report in April, Credit Suisse had repaid 60 billion Swiss francs, leaving a net borrowing total of 108 billion Swiss francs from the SNB.