.gif)
News
Central banks cut interest rates to ease financial crisis
UK interest rates have been cut by 0.5% as part of an international effort to ease the pressure on liquidity in the international money markets.
Seven jurisdictions across the globe, including the Bank of England and the US Federal Reserve, have cut rates as governments and central banks are forced to intervene in the markets.
The interest rate cut comes as the Chancellor Alistair Darling announced plans for a massive bailout of the UK banking system as concerns grow over the health of a number of top UK banks.
It is hoped that the rate cuts will bring relief to smaller businesses looking to raise funds.
Advertisement
Comments
Bryn Oakley - 08 October 2008
Glad to read that interest rates have been cut. I realise that several banking jurisdictions agreed to 0.5% cut, but I feel they are all fighting shy of making the real move and taking the bull by it's horns to cut the rate by a full percentage point. The Aussies have realised 0.5% is not going to be enough. I believe these banking authorities will be meeting again next week to repeat the exercise. The trouble is, by fighting shy and making 2 cuts \(if indeed they do) it will not have the same affect on the markets and the credit situation generally as a single blast cut!
Colin Thompson - 08 October 2008
US organisations are pressing for a 1% rate! The UK organisations are demanding a !% cut in the rate!
These cuts will not be enough to move the economy, what is required is the interbank lending rates to be reduced back to the 2000 rate then we will see movement in lending again. Plus, a large reduction in bank personnel bonuses.
Do you wish a free report on;
THE ROAD AHEAD - CREATE THE OPPORTUNITY
Industrial Market Review and Outlook for 2009
then email: colin@cavendish-mr.org.uk
Colin Thompson
Cavendish
www.cavendish-mr.org.uk
To post comments please log in here