The Swiss National Bank raised its benchmark interest rates to 0.5%. A move that puts an end to the era of negative rates in Europe.
The 75 basis point hike follows an increase to -0.25% on June 16, which was the first rate hike in 15 years. Previously, the Swiss central bank had kept rates stable at -0.75% since 2015.
Inflation in Switzerland is currently at its highest in three decades, reaching 3.5% last month.
The Swiss franc reached its strongest level against the euro since January 2015 at the beginning of the week as economists began speculating on the prospect of a 75 basis point rise.
Switzerland was the last country in Europe with a negative policy rate as central banks in the region aggressively hiked rates to cope with inflationary pressures.
Japan is now the last major economy with a central bank with rates in negative territory, on Thursday the Bank of Japan decided to keep interest rates unchanged at -0.1%.
Denmark, meanwhile, ended its nearly ten-year negative streak on September 8, when the central bank raised policy rates by 0.75 percentage points to 0.65%.