Swiss National Bank cuts interest rate by 50 basis points. | CountingPips Forex Blog

November 6, 2008 - Forex Economic News

Swiss National Bank cuts interest rate by 50 basis points.

The Swiss National Bank announced today its decision to reduce its interest rate by 50 basis points effective immediately. The new Libor target range is 1.50-2.50 percent with the SNB holding the rate in the center of that range for a 2.00 percent interest rate. The SNB rate Swiss Bank cuts interest rate cut was unexpected and the first time since 2003 that the bank had reduced its rate outside the regularly scheduled meetings. Today's decision follows an October 8th rate reduction by 50 basis points that was coordinated with other major central banks to ease effects of the credit crisis and falling stock markets.

Accompanying the interest rate decision, the SNB release stated that, "The global economic outlook has deteriorated more severely than anticipated, which will
impact growth in Switzerland in the next few quarters; growth in 2009 might even be
negative. Moreover, the economic slowdown, the decline in the price of oil and the
appreciation of the Swiss franc are reinforcing the expected drop in inflation."

The next SNB meeting is scheduled for December.

tags: snb, swiss franc, interest rate, economy

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