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Monetary Policy

Slovakia cuts rates in line with ECB

The National Bank of Slovakia shifted its policy rate for the first time in 17 months on Tuesday, cutting by half a point to 3.75% - on par with the European Central Bank's (ECB) benchmark borrowing cost.

Trichet hints at rate cut

Jean-Claude Trichet, the president of the European Central Bank (ECB), on Monday signalled the Governing Council would cut interest rates at its next meeting on 6 November.

Korea cuts by 75bp on signs of slowdown

The Bank of Korea on Monday slashed its key rate by 75 basis points in a surprise move to counter an economic slowdown. The central bank also broadened its collateral rules to include some mortgage-backed securities on signs of a liquidity shortage.

Korea's Lee urges caution

Central banks need to be cautious in coping with price pressures as financial markets are very unstable and their future direction is unclear, said Seongtae Lee, the governor of the Bank of Korea.

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.

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