TEXT-SNB statement on interest rate cut

Wed, Oct 8 2008, 11:55 GMT
http://www.afxnews.com

- Oct 8 (Reuters) - Here is the edited text of the statement

from the Swiss National Bank on a coordinated rate cut by major

central banks.

Swiss National Bank -- relaxation of monetary policy

The Swiss National Bank (SNB) has decided to ease conditions

in the money market by 50 basis points in a bid to bring down

the Swiss franc three-month Libor from its most recent level of

3 percent to 2.5 percent. To this end, the SNB is lowering the

target range to 2-3 percent.

The global financial crisis has intensified and is having a

considerable impact on the international economy. The slowdown

in economic activity in the U.S. and Europe is more severe than

what the SNB had forecast at its last monetary policy assessment

of 18 September 2008.

The Swiss economy is also affected by these developments.

Economic growth for 2009 will be weaker than expected at the

last assessment. In view of the improved inflation outlook, as a

result of the economic downturn and the low oil prices, the SNB

is now able to loosen its monetary policy reins.

The Swiss National Bank will continue to provide the Swiss

franc money market with liquidity in a generous and flexible

manner. It will keep a close watch on developments in the

financial markets, so as to assess their impact on economic

activity and the inflation outlook and be able to react swiftly,

if necessary.

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Keywords: SWISS SNB/TEXT

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