A 50-basis-point rate hike by the Swiss central bank despite Credit Suisse's turmoil

Thursday witnessed a 50 basis point rise in the benchmark interest rate of the Swiss National Bank, which is now 1.5 percent.

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In this case, the Federal Reserve has increased its policy rate for the fourth consecutive time, and the change is in line with analysts' expectations.

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The bank in a press release said that the additional monetary tightening is being undertaken as a way of countering "the renewed rise in inflationary pressures".

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Furthermore, the report said if a rise in inflation occurs over the medium term, further rises "cannot be completely ruled out.".

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Swiss National Bank has released a new forecast that projects inflation to average 2.6% in 2023, 2% in 2024, and 2.1% by the end of 2025, based on a new analysis of the Swiss national bank's forecast, with inflation expected to stand at 2.1% at the end of the year.

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As a result of the latest interest rate hike, the Swiss National Bank estimates that domestic inflation will remain well above its target range of 0% to 2%.

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The inflation rate in Switzerland rose to 3.4% year-on-year in February, exceeding the analysts' expectations. Despite that, the country's consumer prices are just a fraction of its European neighbors, whose countries' inflation rates are soaring at explosive levels.

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Interest rates in the country have been rising since September, following a surprise hike in interest rates by the Swiss central bank in June which was the first rate hike since 2007 by the central bank since the tightening of monetary policy.

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There were indications from the Swiss National Bank that if inflationary pressures continued, other rate hikes could be on the horizon.

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As stated in the central bank press release issued in December, there is not any guarantee that there will not be additional increases in the SNB policy rate in the medium term in order to ensure price stability.

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The SNB also stated that it is willing to participate in the foreign exchange markets to provide appropriate monetary conditions as needed, as needed.

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Several weeks ago, the Swiss National Bank came to the world's attention when it agreed to lend embattled lender Credit Suisse up to 50 billion Swiss francs ($53.68 billion) to ease its financial woes. Despite the fact that Saudi National Bank, the lender's biggest investor, refused to provide further financial assistance to the lender, shares of the lender plummeted on the news.

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There was a tumultuous period for Credit Suisse over the past few years, with scandals and losses, which led to the liquidity lifeline and UBS takeover