ZURICH (Reuters) - The Swiss National Bank cut interest rates for the second time within a month yesterday to stem the rise in the Swiss franc and to revive the country's slowing economy, which it sees heading into recession.

The SNB said it had lowered its target band for the three-month Swiss franc LIBOR to 1.50-2.50 percent from a previous 2-3 percent range, aiming now for the mid-point of the new range or 2.00 percent.

"The global economic outlook has deteriorated more severely than anticipated, which will impact growth in Switzerland in the next few quarters; growth in 2009 might even be negative," the SNB said.

"Moreover, the economic slowdown, the decline in the price of oil and the appreciation of the Swiss franc are reinforcing the expected drop in inflation," the SNB said.