IMF’s India Representative on rate cuts

IMF’s India Representative on rate cuts
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First Published: Wed, Oct 08 2008. 08 21 PM IST
Updated: Wed, Oct 08 2008. 08 21 PM IST
New Delhi: IMF India representative Sanjay Panth has said the coordinated action by central banks across the world, will aid the real economy and help the global liquidity situation. “This will lead to the situation for India getting better as well,” he shared as he spoke over the phone with Mint.
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Earlier on Wednesday central banks around the world cut interest rates in a joint effort in a response to the global financial crisis. The US Federal Reserve cut the key federal funds rate by 50 basis points to 1.5%. China, the European Central Bank (ECB) and central banks in Britain, Canada, Sweden and Switzerland also cut rates in a coordinated response.
The cuts followed days of calls for concerted action after repeated attempts by central banks to inject liquidity into world markets failed to halt a crisis of confidence.
Britain had earlier offered to pump at least 50 billion pounds ($87.2 billion) into its biggest retail banks to help them survive the crisis. The US too had approved a $700 billion package last week to rescue its ailing banks.
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First Published: Wed, Oct 08 2008. 08 21 PM IST