Swiss central bank raises interest rates by 0.75%, ending era of negative rates

Swiss National Bank has raised its benchmark interest rate to 0.5 percent on Thursday, considers a shift that brings an end to an era of negative rates in Europe.

This increase comes after inflation in Switzerland hit 3.5 percent last month which is the highest rate in three decades.

The bank decided to raise interest rates by 75 basis points to 0.5 percent after raising it in June for the first time in 15 years at -0.25 percent.

Prior to that move, Switzerland was the last country in Europe to still have a negative interest rate, as central banks in the region sought to raise rates in order to counter rising inflation.