THE WORLD'S biggest central banks today launched a desperate bid to save the global economy by flooding markets with cheaper cash. The Bank of England was one of six pledging to make it cheaper for big banks to access "unlimited amounts" of US dollars.
It came as EU chiefs warned Europe had TEN DAYS to solve the debt crisis or face catastrophe. The central banks' shock action should make it easier for businesses and households to borrow - and make it easier for banks to fund themselves.
Stock markets around the world soared with the FTSE 100 up 152 points by 2pm. Germany's DAX leapt four per cent.
In a statement, the Bank of England said: "The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit."
The Bank of England was joined by the European Central Bank, the US Federal Reserve, Bank of Japan, Bank of Canada and the Swiss National Bank. The banks launched weekly and then three-monthly auctions of dollars in September in a bid to make more cash available.
But by lowering the cost it's a clear sign of the growing fear that the Eurozone crisis will spark a crippling double-dip.
Earlier today, EU monetary chief Olli Rehn warned: "We're now entering a critical period." He said: "We are now entering the critical period of 10 days to compete and conclude the crisis response of the European Union."
France's central bank governor Christian Noyer added: "We are now looking at a true financial crisis."
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