Switzerland cuts interest rate to 0.5 percent

The Swiss National Bank cut its key interest rate in half on Thursday to 0.5 percent, its fourth reduction since October.

The move came a week after European central banks cut their rates in an attempt to ward off a long recession triggered by the financial crisis.

Before cutting its interest rate to 2.5 percent in October, the Swiss bank had reduced its rates only once in the last 5 1/2 years.

It cut its rates twice in November to 1 percent.

Only once in the past has the bank's key interest been lower — 0.375 percent between March 2003 and June 2004.

Experts have forecast a 0.5 percent drop in the country's real GDP for the coming year.

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