US and ECB slash rates 0.5% to stabilise markets

INTEREST RATES - Monday 17 September saw both the ECB and US Federal Reserve cut interest rates by 0.5 percent. The Us move failed to stop substantial falls on the US stock market.

Interest rate reductions were seen on both sides of the Atlantic yesterday. There was a suggestion that the ECB had made its decision after strong urging from the US authorities.

In a double surprise move, both America's central bank, the Federal Reserve, and the European Central Bank, have cut half a percentage poin