London: World central banks launched a concerted action to cut interest rates by half a point on Wednesday in a major new step to counter the deepening global financial crisis.
The European Central Bank, Bank of England, US Federal Reserve and several other national central banks made half-point cuts to their key lending rates.
Part of the text is below - of a joint statement made by the Bank of England, the Bank of Canada, the European Central Bank, the US Federal Reserve, Sveriges Riksbank, the Swiss National Bank and the Bank of Japan, released by the Bank of England:
“Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets.
“Inflationary pressures have started to moderate in a number of countries, partly reflecting a marked decline in energy and other commodity prices.
“Inflation expectations are diminishing and remain anchored to price stability. 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.
“Some easing of global monetary conditions is therefore warranted. “Accordingly, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, Sveriges Riksbank, and the Swiss National Bank are today announcing reductions in policy interest rates.
“The Bank of Japan expresses its strong support of these policy actions.”