From ABN Amro
The
Swiss central bank cut its interest rate close to zero
and started buying foreign currencies to stem the franc’s
appreciation as the recession sharpens and deflation looms.
The franc plunged the most against the euro since the single
currency was introduced in 1999 after the Swiss National
Bank in Zurich lowered its main lending rate to 0.25 percent
from 0.5 percent. The SNB also said it would buy corporate
bonds as well as currencies in its first solo intervention in
foreign exchange markets since 1992.