ZURICH, June 22 (Reuters) - The Swiss National Bank will not refrain from increasing interest rates again despite their effect on Swiss rents, Chairman Thomas Jordan said on Thursday after the central bank raised its policy interest rate for the fifth time in succession.
"Policy rate increases lead to a rise in mortgage rates and thus also in the reference interest rate for rents, " said Jordan. "This makes it possible for some rents to be increased, which can in turn temporarily result in higher overall inflation.
"However this feedback effect must not be taken as a a reason for refraining from necessary policy rate increases," Jordan said in remarks prepared for the SNB's news conference on Thursday. (Reporting by John Revill Editing by Tomasz Janowski)
