LONDON, June 20 (Reuters) - The Swiss franc dropped and

stocks rallied on Thursday after the Swiss National Bank lowered

interest rates by 25 basis points to 1.25% after a similar cut

in March.

The euro was last up around 0.4% against the

franc at 0.9538, rising off a roughly four-month low before the

decision. The dollar climbed 0.45% to 0.8885 francs as

the Swiss currency fell.

Switzerland's blue chip stock index rose 0.5%,

having been little changed before the announcement.