ECB Rate Cut

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Brownie10

Guest
Yep it's on Bloomberg, 50bps. Co-ordinated effort. What will happen deposit rates now? Will they cut to maintain margin or keep them high to attract cash and improve liquidity? Very interesting

Fed, ECB, Central Banks Lower Rates in Coordinated Reduction

By Scott Lanman
Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four otheFed, ECB, Central Banks Lower Rates in Coordinated Reduction

By Scott Lanman
Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''
r central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''
 
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z105

Guest
I see the Bank of England have cut rates by 0.5% to 4.5% but on that Bloomberg link it doesn't state by what amount the ECB have dropped rates ??
 

Celtwytch

Frequent Poster
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627
I see the Bank of England have cut rates by 0.5% to 4.5% but on that Bloomberg link it doesn't state by what amount the ECB have dropped rates ??
It says it on the ticker-tape style thingy at the top right of the page. (It actually says half a point, so I presume that means 0.5%)
 
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z105

Guest
It says it on the ticker-tape style thingy at the top right of the page. (It actually says half a point, so I presume that means 0.5%)
Still can't see it however, it has been confirmed, it's on Sky news too.

Bit of a shock, can they throw anything else at this crisis ?
 

The_Banker

Frequent Poster
Messages
330
It seems the Worlds Central Banks have acted in unison. The Fed, ECB, BOE, Canadian Central Bank, Swedish CB and other all cut at the same time!
 

corkfella

Registered User
Messages
44
big suprise from the ecb considering they all agreed only last thursday and left it alone, it must show how worried they are but at least they are all working together.
 

NorfBank

Frequent Poster
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2,103
If on a tracker you will see the 0.5% passed on.
If on a variable rate, it is up to the bank.
 

Towger

Frequent Poster
Messages
2,126
got to love tracker mortgages :p
As long as the banks don't start pulling tricks, trying to get us off them. :eek:
The only down side is that unless the EURIBOR drops by the same amount the Banks may be losing even more money on us.

On standard mortages I dont think people will see much of a cut, if any. The banks still need the cash.
 

VOR

Frequent Poster
Messages
436
3M EURIBOR is now 164 bps above ECB rate.
Will the last person on a variable rate, please turn off the lights.
 
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Guest116

Guest
Nice one, good for tracker mortgage holders. Hopefully we might see another .25 cut by year end...?
 

Sunny

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3,547
Anyone reckon the Government will be having a word in their ears telling them to pass on the full decrease?
 
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