Backgrounder: the worst day of the banking crisis yet?
Central banks across the world take the unprecedented step of slashing interest rates simultaneously as capital markets are left reeling
Is this the worst day of the financial crisis to date? Some of the world’s
biggest central banks slash their interest rates in a co-ordinated move in a
bid to breathe confidence into the global economy.
The last time such a drastic move was taken was after the terror acts of 9/11
in the United States. Some parts of the media have even set up live text pages
in order to provide a
by blow account of the crisis.
The Bank of England cut interest rates alongside the Federal Reserve in the
US, the European Central Bank, the Bank of Canada, Swiss National Bank and
Sveriges Riksbank in Sweden.
The move was also supported by the Bank of Japan, where rates are already
just 0.5%. Coupled with the
bailout package served up to banks today the global markets have not been so
shaky since Black
Monday more than 20 years ago.