Thursday, the Swiss National Bank unexpectedly lowered the target range for the three-month Libor by 100 basis points to 0.5%-1.5%, with immediate effect. This is the second reduction in key interest rate in November.
"It will provide the Swiss franc money market with a generous and flexible supply of liquidity in order to bring the Libor down to the middle of the target range," the SNB said.
The central bank noted that fall in raw material and oil prices would assist to restore price stability sooner than expected. Inflation would possibly fall below 2% as early as the end of this year, the SNB said.
The central bank would continue to closely watch the situation on the money and foreign exchange markets.
On November 6, the SNB had cut the interest rate by 50 basis point to 2% from 2.5%, which was the second rate cut in a span of one month. The central bank was not scheduled to announce a rate decision until December.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.