Aug. 3, 2011, 5:49 a.m. EDT
Swiss central bank battles to halt franc’s rise
‘Massively overvalued’ franc hurts economy, SNB says; euro surges
By William L. Watts, MarketWatch
FRANKFURT (MarketWatch) — The Swiss National Bank was pulled into Europe’s sovereign-debt crisis Wednesday, cutting its key lending rate to zero and taking other steps short of outright intervention in the foreign-exchange market to halt the Swiss franc’s rise to record levels versus the beleaguered euro.
“Effective immediately, the [Swiss National Bank] is aiming for a three-month Libor as close to zero as possible,” the central bank said in a statement.
The central bank said it narrowed its target range for three-month Libor to a range of 0% to 0.25% from 0% to 0.75% and said it would boost the supply of liquidity to the Swiss franc money market over the next few days, a move economists described as a form of quantitative easing.
Full article: http://www.marketwatch.com/story/swiss-central-bank-battles-to-halt-francs-rise-2011-08-03
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