Major Central Banks Cut Interest Rates in a Coordinated Move
10/08/08
A group of the worlds major central banks coordinated rate cuts for their respective countries in response to dire economic outlooks today. The European Central Bank, US Federal Reserve, Bank of Canada, Bank of England and Sveriges Riksbank cut rates by 50bps while the Swiss National Bank only cut by 25bps. This move comes amidst continued concern over the global economic outlook and the spiraling affects of the credit crunch. With growth slowing globally many of the central’s banks highlighted that rates could be reduced without fear of sparking inflationary pressures and was absolutely necessary to combat the slowing growth outlook. The US Dollar and Japanese Yen remain the favorite safe-havens for most currency traders.