SNB raises rates, sells gold

The Swiss National Bank has raised interest rates by 25 basis points to 2.5% on 14 July. The central also announced that it will sell 250 tonnes of gold and increase its foreign exchange reserves by a corresponding amount.

Commenting on the monetary policy decision the SNB said: "Switzerland's economy is in excellent shape. Indeed, the economy is developing even

better than expected back in March. For 2007, the National Bank now expects real GDP to grow at a rate of close to 2.5%."

The central