On Thursday, the Swiss National Bank (SNB) shocked the market by cutting its interest rate for the first time in nine years by 25 basis points to 1.50% after the country’s inflation decreased to 1.2% in February.
The move caused the Swiss franc to plunge sharply against the US dollar and hit an eight-month low against the euro.
The cut wiped out expectations from analysts polled by Reuters, which expected the central bank to hold its rates at 1.75%, while the SNB pointed out that the move would support economic activity in the country.
