Inflation and interest rates likely to climb

Economists believe inflation will break through the target set by the Swiss National Bank and interest rates will have to rise again.

The OECD says inflation will hit 2.4% - the bank’s target is no more than 2%. But the organisation also predicts it will fall back to 1.2% next year.

The national bank is due to announce its interest rate decision tomorrow and its widely expected a to raise rates a quarter of a percent at 2%.

But the OECD says the economy should grow by more than half a percent this year and 1.2% next.

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