Many of the world’s leading central banks have signed-on to a coordinated effort to help protect the global economy from a worsening European debt crisis. The US Federal Reserve, the European Central Bank (ECB), the Bank of England and the central banks of Canada, Japan and Switzerland are all involved.
Starting in early December, the central banks will reduce lending rates for U.S. dollars in an attempt to help businesses and households access finance more easily. As well as cheaper US dollars, the central banks will also provide easier access for banks to other major currencies as and when they need it.
Stock markets jumped sharply on the news, with Germany’s Dax index up 4% on the day and France’s Cac 40 and the UK’s FTSE 100 about 3% higher.
Source: BBC News
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