Europe's central banks jack up interest rates to fight inflation surge

BERN: Central banks across Europe raised interest rates on Thursday , some by amounts that shocked markets, and hinted at even higher borrowing costs to come to tame soaring inflation that is eroding savings and squeezing corporate profits.

The day's biggest moves came in Switzerland where the SNB raised its policy rate to -0.25 per cent from the -0.75 per cent, a step so large, not a single economist polled by Reuters had predicted it. The Swiss franc jumped almost 1.8 per cent against the euro on the decision and was headed for the biggest daily rise since January 2015 when the SNB unhooked the franc from its euro peg.CNA Explains: US Fed makes biggest rate hike since 1994 – what does it mean for you and your mortgage rate?In London, the Bank of England was more cautious but said it was ready to act"forcefully" to stamp out dangers posed by an inflation rate heading above 11 per cent.

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