Dow Jones: Swiss Central Bank cuts interest rates driven by political uncertainty in the eurozone

According to a report by Tim Graf, head of macro strategy for Europe, the Middle East, and Africa at Deutsche Bank, the return of political uncertainty in the eurozone has recently boosted the safe-haven currency, the Swiss franc, which may have greatly influenced the Swiss National Bank’s decision to cut the policy interest rate by 25 basis points to 1.25% on Thursday. The Swiss National Bank hopes to avoid a situation similar to the extreme strengthening of the Swiss franc during various fiscal crises from 2010 to 2012. The Swiss National Bank stated that the recent appreciation of the Swiss franc reflects the political uncertainty in Europe and will continue to closely follow the situation.