Thursday, November 06, 2008
See posts of 2 May and 25 September, and 6 October on this blog for more information. The coordination is interesting as well...increased economic chaos makes for strange bedfellows. Some pundit types are claiming this type of intervention is "without precedent", which is of course foolish.
Examples of economic coordination can be found from the city-states of Greece to colonial Europe.
BOE Leads European Central Banks in Rate Cuts as Economies Slow
By John Fraher
Nov. 6 (Bloomberg) -- The Bank of England led European central banks in reducing borrowing costs to counter the worst financial crisis in almost a century, cutting its key rate by 1.5 percentage points to the lowest level since 1955.
The U.K. central bank reduced its key rate by the most since 1992, taking it to 3 percent. The European Central Bank lowered its benchmark by 50 basis points to 3.25 percent and Swiss policy makers cut their main lending rate by the same margin to 2 percent after an unscheduled meeting.
``It's absolutely staggering and deeply impressive,'' said Brian Hilliard, director of economic research at Societe Generale in London. ``They are clearly grasping the nettle and taking deep action. Boy, this is going to have an impact.''