We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
World's central banks announce co-ordinated action to ease market strains
worldtraveller
Posts: 14,013 Forumite
The world's major central banks made it easier Wednesday for banks to get dollars if they need them, a coordinated move to ease the strains on the global financial system. Stock markets rose sharply on the move.
The European Central Bank, U.S. Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland are all taking part in the operation, which is designed to "enhance their capacity to provide liquidity support to the global financial system."
The European Central Bank said in a statement the central banks were making it cheaper for banks to get U.S. dollar liquidity when they need it, starting next Monday. They are also taking steps to ensure banks can get ready money in any currency if market conditions warrant by establishing a temporary network of reciprocal swap lines.
AP
Bank of England News Release
FTSE up over 3%; DAX up 5%; CAC up 3.75%; DOW, NAS & S&P futures up 2.5%-3%
The European Central Bank, U.S. Federal Reserve, the Bank of England and the central banks of Canada, Japan and Switzerland are all taking part in the operation, which is designed to "enhance their capacity to provide liquidity support to the global financial system."
The European Central Bank said in a statement the central banks were making it cheaper for banks to get U.S. dollar liquidity when they need it, starting next Monday. They are also taking steps to ensure banks can get ready money in any currency if market conditions warrant by establishing a temporary network of reciprocal swap lines.
AP
Bank of England News Release
FTSE up over 3%; DAX up 5%; CAC up 3.75%; DOW, NAS & S&P futures up 2.5%-3%
There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
0
Comments
-
At least for a change this appears to be a preemtive action by the Central Banks to head off a liquidity crisis, rather than waiting for it to happen and then acting too late.
The ECB yesterday allotted 265 Billion Euro in the weekly repo, which is the largest amount for over 2 years.'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
At least for a change this appears to be a preemtive action by the Central Banks to head off a liquidity crisis, rather than waiting for it to happen and then acting too late.
The ECB yesterday allotted 265 Billion Euro in the weekly repo, which is the largest amount for over 2 years.
It is also to address current ongoing issues banks have with obtaining dollar funding, IIRC these FX swap lines opened a few months ago, what they have done today is make it cheaper to access dollars.
But I agree, it is mostly preemptive for the crunch they know is coming.
What may have spooked them is the interbank spreads going beyond the range of the last 3-4 months indicating trust was evaporating even further so the CB's have stepped in with additional liquidity help.0 -
At least for a change this appears to be a preemtive action by the Central Banks to head off a liquidity crisis, rather than waiting for it to happen and then acting too late.
The ECB yesterday allotted 265 Billion Euro in the weekly repo, which is the largest amount for over 2 years.
Maybe its a sign to worry, preemtive action, wow things must be worse than they are letting on.0 -
At least for a change this appears to be a preemtive action by the Central Banks to head off a liquidity crisis, rather than waiting for it to happen and then acting too late.
The ECB yesterday allotted 265 Billion Euro in the weekly repo, which is the largest amount for over 2 years.
Latest rumour being that it was in response to and to avert an imminent failure of a large European bank.
http://www.forbes.com/sites/greatspeculations/2011/11/30/big-european-bank-failure-averted-what-central-banks-did-not-tell-us/0 -
Im sorry I dont really understand what this means.
I thought interest rates couldnt really get any lower?
All they can do is create more currency or lower interest rates, is this latest co-ordinated action either or both of these?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards