GENEVA: The Swiss central bank announced a surprisingly large interest-rate cut on Thursday as it cited rising "uncertainty" about the economic outlook due to future US policies and political turmoil in Europe.
The Swiss National Bank (SNB) lowered its main rate by a half-percentage-point to 0.5 percent as inflation has slowed in the country.
Economic growth was "only moderate" in the third quarter and is forecast to reach 1.0 per cent in 2024 and 1.5 per cent next year, the SNB said in a statement.
"Growth should pick up somewhat next year, albeit only slightly due to the moderate global economic activity", the Swiss National Bank (SNB) said in a statement.
"Uncertainty about the economic outlook has increased in recent months. In particular, the future course of economic policy in the US is still uncertain, and political uncertainty has also risen in Europe," it said.
"In addition, geopolitical tensions could result in weaker development of global economic activity. Equally, it cannot be ruled out that inflation could remain higher than expected in some countries."
Donald Trump takes office in January after vowing to slap tariffs on imports to the United States during the election campaign, a move that raises concern about its effect on the global economy.
Europe, Germany and France are mired in political troubles.
Early elections are due to take place in Germany in February following the collapse of the coalition government led by German Chancellor Olaf Scholz.
In France, President Emmanuel Macron is due to name a new prime minister after MPs toppled the government last week.