Central banks join forces to tackle crisis

1 December 2011

Six of the world's foremost central banks are to join forces in an attempt to boost the global economic recovery, it has emerged.

The Federal Reserve is to work alongside the Bank of England, the European Central Bank, Bank of Japan, Bank of Canada and the Swiss National Bank to come up with fresh policies designed to combat the ongoing issues being experienced in regions such as the eurozone.

In a statement, the institutions indicated that a period of "co-ordinated actions" should ease the strain on the supply of credit to both businesses and households, which should then encourage growth.

For instance, these central banks have agreed to reduce the pricing on existing temporary US dollar liquidity arrangements by 50 basis points as of next Monday (5 December).

Recently, JPMorgan Chase & Co indicated that all central banks are currently cutting their borrowing costs and could implement further quantitative easing in the near future.

By Gary Cooper

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