45 minutes to save the world? Central banks fight against downturn

The European Central Bank has cut interest rates to a record low, from 1% to 0.75%, mimicking action taken around the globe today, as the authorities move to rescue the deteriorating global economy.

With signs countries around the world are once again seeing their economies struggle, central banks in Europe, the UK and China have all moved to increase support measures. As well as lowering interest rates, the ECB also cut its deposit rate from 0.25% to zero, in an attempt to stimulate bank lending and help banks in countries such as Spain that are borrowing heavily from the ECB. In a spate of policy moves taken after midday UK time, China also cut its benchmark interest rate for the second time in a month, as well as moving to offer bigger discounts on borrowing costs. The coun...