The Swiss National Bank has cut interest rates for the second time in a week, citing concern about the renewed strength of the swiss franc in the wake of the attacks in the United States. The bank cut the rate by half a per cent, meaning interest rates are now one per cent lower than a week ago.
The bank's three-month LIBOR (London Interbank Offered Rate) band now stands at 1.75 to 2.75 per cent.
The swiss franc on Friday rose to an all time high of around SFr1.44 to the euro and is at a 20 month high against the dollar at about SFr1.59. But the dollar and the euro clawed back some loss ground after news of the interest rate cut. The franc is currently trading at around SFr1.465 to the euro.
Following the attacks on New York and Washington, central banks around the world took concerted action to cut interest rates amid fears that the incidents could tip the world into recession.
swissinfo with agencies