The Swiss National Bank today cut its key interest rate by a quarter point to a record low 0.25 percent to fight the recession triggered by the global economic crisis, and said the Swiss economy would shrink this year by more than previously thought.
It is the fifth rate cut by the Swiss bank since October, and comes a week after the European Central Bank cut its main rate to a record low 1.5 percent.
The central bank said it expects Switzerland’s economic output will fall between 2.5 percent and 3 percent this year, with nearly all sectors of the Swiss economy negatively affected by the economic downturn.
The bank also said it would act to loosen monetary policy and prevent the Swiss franc from appreciating too much in value.
The Swiss franc slumped by a record amount against the euro today after the country’s central bank confirmed it was intervening. (AP)
