SNB cuts interest rates in joint central bank action

ZURICH (Reuters) - The Swiss National Bank lowered its target band for the three-month Swiss franc LIBOR by 25 basis points for the first time in over five years as part of a coordinated rate cut by major central banks.

The central bank said it lowered its target rate for the 3-month Swiss franc LIBOR to 2.00 to 3.00 percent, aiming to bring the LIBOR down by 50 basis points from its current level to its new target of 2.50 percent.

The SNB had left its target rate for the 3-month Swiss franc LIBOR unchanged at 2.75 pct at its meeting in September as the central bank was still balancing the risks for the economy from the global credit crisis with high inflation rates.

For the SNB statement click on www.snb.ch

(Reporting by Sven Egenter)