SNB Unexpectedly Cuts Rates


The Swiss central bank unexpectedly cut its main lending rate by 50 basis points and said the economy may contract next year.

The central bank, led by Jean-Pierre Roth, lowered its three-month Libor target to 2 percent today from 2.5 percent, it said in a faxed statement from Zurich. The SNB wasn't scheduled to decide on interest rates until Dec. 11.

Today's action is the bank's second inter-meeting cut in a month, as the financial market crisis causes stocks to plunge and forces governments to buy troubled assets. UBS AG, Switzerland's biggest bank, got a $59.2 billion aid package Oct. 16 after piling up the biggest losses of any European lender from the global credit crisis

The financial market crisis is reverberating through the global economy, causing stocks to plunge and forcing governments to buy troubled assets and take equity in struggling banks. UBS AG, Switzerland's biggest bank, got a $59.2 billion aid package Oct. 16 after piling up the biggest losses of any European lender from the global credit crisis.


TradingEconomics.com, Bloomberg.com
11/6/2008 5:17:25 AM