Switzerland reduces key lending rate on slump

Switzerland's central bank cut its benchmark interest rate by an unprecedented percentage point after the economic growth outlook worsened.

The Swiss National Bank reduced its target for the three- month Libor to 1 percent and promised a "generous and flexible" supply of Swiss francs.

It's the third time the SNB has lowered rates since the beginning of October. Yesterday's step is the biggest single cut the Zurich-based SNB has made since it began targeting the three-month Libor in 2000.