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Monetary Policy

China slashes rates

China chopped more than a percentage point off its lending rate on Wednesday in a further sign of Beijing's fears the global slowdown will spark a severe slump in export demand.

Fed's Bullard sounds knell on rate moves

With the effective federal funds rate trailing the Fed's target by more than 60 basis points and interbank spreads for longer-term loans remaining well above pre-crisis levels, one of the regional Federal Reserve presidents has acknowledged further rate…

Price plunge won't herald deflation: ECB's Mersch

Though a fall in the price index at some point in 2009 is likely, such a slump should not be seen as a harbinger of deflation, Yves Mersch, the governor of the Central Bank of Luxembourg and a member of the European Central Bank's (ECB) Governing Council…

Bank could have cut by 200bp

Members of the Bank of England's Monetary Policy Committee, who shocked markets earlier this month when they slashed rates by 150 basis points, had considered an even bigger cut.

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