The Swiss central bank raised interest rates by 0.5 percentage points on Thursday and warned that further rises were possible, despite turmoil in the banking sector as it battles inflation.

"The Swiss National Bank is tightening its monetary policy further and is raising the SNB policy rate by 0.5 percentage points to 1.5 percent. In doing so, it is countering the renewed increase in inflationary pressure. It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term," the central bank said in a statement.