Swiss central bank enacts biggest-ever hike to key rate

GENEVA (AP) — Switzerland’s central bank has carried out the biggest hike ever to its key interest rate in an effort to clamp down on inflation.

The Swiss National Bank said in a statement Thursday that it could not rule out further increases beyond the increase of three-quarters of a percentage point rise “to ensure price stability over the medium term.”

The move raised the rate from minus 0.25% to 0.5%, which would be effective from Friday.

Stock markets move in cycles. Historically, bull markets last longer than bear markets, but both can last longer than investors expect. But inside bull markets and bear markets, there can still be volatile price changes in the opposite direction. And when the market does reverse direction, the biggest gains are made by investors that stay the course.

In a volatile market, one option for staying the course is to invest in quality blue-chip dividend stocks. Blue-chip stocks are companies that have a large market capitalization. That means there are companies in mature industries.

That maturity allows these companies to deliver consistent performance that is independent of whatever is happening with the country’s monetary policy. When interest rates fall, these companies are poised for growth. And when interest rates rise, these companies have strong balance sheets that allow them to maintain pricing power and profits to provide stability.

All of this means that investors with lower risk tolerances can stay in the market without having to give up on growth. And in this special presentation, we’re giving investors seven blue-chip names that investors can buy with confidence no matter what is happening with interest rates.

View the “7 Blue-Chip Dividend Stocks That Won’t be Impacted by Rising Interest Rates”.

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