Swiss raise interest rate by 1/2 point amid inflation fears

GENEVA (AP) — Switzerland’s central bank has announced a one-half of a percentage point increase to a key interest rate Thursday, the first increase in nearly 15 years. It indicated the move was an attempt to ward off inflationary pressures as food and fuel prices rise worldwide. The Swiss National Bank said the rate hike would take effect Friday. The Swiss franc jumped against the euro and the U.S. dollar in currency markets after the announcement. The bank said the rate on sight deposits would be increased by a half point, to negative 0.25%. Swiss interest rates have been negative for months, indicating that inflation had not been a worry of monetary policymakers in the rich Alpine country.