Swiss National Bank Cuts Rates

November 20, 2008

Surprise rate cut sends Swiss franc lower in forex tradingIn currency trading, the Swiss franc is heading much lower, thanks to a surprise rate cut from the Swiss National Bank. The central bank in Switzerland made a dramatic cut of 100 basis points, in an effort to help stimulate the economy.

Like many other countries, the Swiss National Bank participated in a coordinated rate cut not too long ago. On that occasion, the bank cut rates by 50 basis points. However, it is apparent that Swiss monetary policy makers feel that they can do more to support the Swiss economy.

As one might expect, the Swiss franc is markedly lower in forex trading, especially against the U.S. dollar.