In addition to the FOMC meeting, the Swiss National Bank (SNB) also implemented its tightening policy this morning.

Looking at the data released, the policy rate was increased by 50 basis points to bring the total rate increase to 1% from 0.50%.

It was the 3rd consecutive increase to bring the bulk total to 175 basis points so far this year.

The decision was made by the SNB based on the need to curb inflationary pressure from continuing to grow.

As of November 2022, Swiss inflation rose 3%, which is the same reading as the previous month and down from a peak of 3.5% in August 2022.

It is clear from the SNB's official statement that the central bank cannot rule out an additional increase in the policy rate in order to ensure price stability in the medium term.

On that occasion, the SNB announced its active involvement in the foreign exchange market as required.

In the meantime, the SNB set Switzerland's 2022 growth at around 2% compared to last September's forecast of 2%, the 2023 forecast of around 0.5% and the 3rd quarter of 2025 inflation could reach 2.1%.