Swiss National Bank cuts interest rates by shock 1 pct

The cut was the third within a month and came as the SNB said there was a higher risk of a marked slowdown in economic activity in Switzerland next year.

"International economic conditions have worsened appreciably, bringing a higher risk of a marked slowdown in economic activity in Switzerland next year," SNB said in a statement. "The SNB will continue to monitor closely the situation on the money and foreign exchange markets.""It's a huge step and a big surprise, Holger Schmieding, chief European economist at Bank of America Corp. in London told Bloomberg."The global financial environment has considerably worsened over the past days. They'll probably keep rates on hold next month given the extent of today's step."