* reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/cb-polls?s=GCR01+30+9&st=Menu+G+C poll data

BENGALURU, June 19 (Reuters) - The Swiss National Bank will raise interest rates by 25 basis points on June 22, defying market expectations for a larger move, according to economists polled by Reuters who said the bigger risk was rates will peak higher than they expect.

Despite an easing in inflation, currently the lowest among G10 economies at 2.2%, SNB Chairman Thomas Jordan recently repeated his readiness to raise rates, encouraging markets to expect a 50 basis-point hike on Thursday.

Still, an overwhelming majority of economists, 30 of 33, polled June 15-19 said the SNB will raise its key policy rate by 25 basis points to 1.75%, less than the 50 basis points it delivered in March.

Only three economists expected the central bank, which meets to set policy four times a year, to match its March move.

Most analysts, 23 of 33, said the SNB will be on hold for at least the rest of the year following this month's move.

"We think the SNB will deliver another 25bp hike in June, with a risk for 50bp...and, while still data dependent, this is probably the last hike in this cycle," noted Ruben Segura-Cayuela, head of Europe economics research at BofA.

"The main reason we didn't go for a stronger hiking cycle comparable to other central banks is we were expecting the SNB to actively use its balance sheet to help with the tightening of conditions. This was explicit in the last statement when they told us this was helping dampen imported inflation."

Since departing from its long-held campaign to rein in the safe-haven Swiss franc last year, the central bank has actively intervened in markets to prop up the currency which has helped keep inflation under control.

The franc is up nearly 2.5% against the euro since its March meeting and one of the best performers among G10 currencies.

Still, market expectations of a larger move were fuelled by the European Central Bank's hawkish tone after a widely-expected 25 basis point move last week and pricing for at least one more ECB hike before the SNB's subsequent meeting in September.

In a series of recent interviews, Chairman Jordan and Vice Chairman Martin Schlegel have shown concerns over entrenched inflation and high rents.

"At face value the recent data support the case for the SNB slowing the pace of rate hikes to 25bp...However, the SNB has struck a hawkish tone in recent communications so we think a 50bp hike to 2% is more likely," said Adrian Prettejohn, Europe economist at Capital Economics.

Swiss inflation is high by historical standards and was expected to average 2.4% this year, higher than 2.3% predicted by the government, suggesting risks of higher rates.

Although 23 of 33 economists saw the rate peaking at 1.75%, 10 expected a higher terminal rate. Over 80%, 17 of 20 respondents, said the bigger risk was the terminal rate would be higher than they expected rather than lower.

Markets have priced in about a 50% probability that the terminal rate peaks at 2.25% later this year.

The Swiss economy was forecast to grow 0.8% this year and 1.3% in 2024, slower than the 1.1% and 1.5% predicted by the government.

(For other stories from the Reuters global economic poll

(Reporting and polling by Indradip Ghosh; Editing by Sharon Singleton)