Swiss slash interest rate to 0.5%

The Swiss National Bank cut its key interest rate in half to 0.5% today – its fourth reduction since October.

The move came a week after European central banks cut their rates in an attempt to ward off a long recession triggered by the financial crisis.

Before cutting its interest rate to 2.5% in October, the Swiss bank had reduced its rates only once in the last five-and-a-half years.

It cut its rates twice last month, to 1%.

Only once in the past has the bank’s key interest been lower – 0.375% between March 2003 and June 2004.

Experts have forecast a 0.5% drop in Switzerland’s real GDP for the coming year.