The Swiss National Bank has said it is trimming its key interest rate, a surprise move that makes Switzerland the first major financial centre to announce a cut in recent months.
“For some months now, inflation has been back below 2%, and thus in the range we equate with price stability,” Mr Jordan added. The move, which Swiss media said caught some by surprise, had an almost immediate effect on the Swiss franc, which dropped in value against the euro.In January, the Swiss currency was at all-time highs against the European currency – above 1.07 euros.
It came a day after US Federal Reserve officials signalled that they expect to cut their key interest rate three times this year, fuelling a rally on Wall Street, even though they kept their benchmark rate unchanged for now – a fifth straight time.