Swiss rents are set to increase further after the hike of reference rates was announced this week.

After the Federal Housing Administation (BWO) announced in June that rents will go up by about 3 percent this year for tenants whose leases are based on the reference rate — about 54 percent of contracts overall — another increase is on the way.

The central bank announced on Thursday that it was raising the key interest rate further by 0.25 percentage points to 1.75 percent to counter “inflationary pressure, which has increased again over the medium term.”