Source: FT.com
Asian central banks on Thursday joined their western counterparts in co-ordinated cuts to interest rates in an effort to curb the risk of the credit crisis sparking a severe global recession.
Six of the world’s most important central banks, including the Federal Reserve, the European Central Bank and the Bank of England, on Wednesday announced unprecedented simultaneous emergency interest rate cuts of half a percentage point.
“The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,” the central banks said in a statement.
Central banks in South Korea, Hong Kong and Taiwan followed their example on Thursday morning, helping Asian share markets to make cautious gains.
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