Swiss shock with 100 basis-point cut

The Swiss National Bank (SNB) surprised markets on Thursday by slashing its rate-target band by a full percentage point on signs of a sharp slowdown.

The cut leaves the target for the three-month London Interbank Offered Rate (Libor) at between 0.5% and 1.5%, its lowest since early 2006.

Unlike most central banks, the open market operations of which target overnight rates, the SNB's monetary policy manages banks' borrowing costs for three-month loans. Three-month loans are the most common mat

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