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Monetary Policy

Canada cuts rates further

Canada's central bank cut its key interest rate by a quarter-point on Tuesday, saying the country's economy needs the stimulus to ward off the effects of a recession in the United States.

India cuts rates by 1%

The Reserve Bank of India slashed its key short-term lending rate by a full percentage point on Monday. It was the central bank's first reduction in rates since March 2004.

Bank reforms money market operations

The Bank of England set out plans for three major reforms of its money market operations, including proposals for two new facilities aimed at alleviating the tensions that have kept prices for interbank loans well above historical norms.

Asia makes rate cut 'truly global'

China cut rates for the second time in as many months on Wednesday, supporting the joint action by six of the most important central banks to loosen policy. A host of other Asian central banks have also replicated the Federal Reserve-led move.

Phillips curve is flattening

A new paper from the Reserve Bank of Australia finds that the Phillips curve, which measures the relationship between unemployment and inflation, has flattened in recent years.

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