In a surprise coordinated move, central banks from some of the world's leading economies have announced they're cutting interest rates by 0.5%. The Bank of England cut UK rates from 5% to 4.5%, the Federal Reserve reduced US rates from 2% to 1.5%, and the European Central Bank (ECB) cut eurozone rates from 4.25% to 3.75%.
The central banks of Canada, Sweden and Switzerland all took similar action in the co-ordinated move. Even China cut its rate, albeit by 0.27 percentage points. However the unprecedented step failed to cheer world stock markets.
The co-ordinated interest rate cuts came within hours of an announcement by the British government that £50bn of public money would be invested in UK bank shares, in a semi-nationalisation of major British banks. This was part of a package of measures aimed at rescuing the banking system that makes available £400bn ($692bn) of fresh money.
Central banks cut interest rates
Will the plan to save British banks work ? In these uncertain times, who knows....
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