The European Central Bank, Bank of England, and Sweden’s Ricksbank slashed their interest rates today in an effort to bolster access to credit while luring consumer spending.
Sweden’s Ricksbank cut interest rates by a larger-than-expected 175 basis points, bringing the rate down to 2%, while the ECB lowered its interest rate by 75 basis points to 2.5%, marking the biggest rate cut in the ECB’s 10-year existence.
The Bank of England’s Monetary Policy Committee decided to slash its interest rate by 100 basis points to 2%, sending its key rate to their lowest level since 1939.
Analysts widely expected a move by the European Central Bank, as weak economic data in the 15-nation eurozone along with easing inflation has given the ECB room for further rate cuts.
Since October, the European Central Bank has lowered its interest rate by 175 basis points.
French President Nicolas Sarkozy announced a stimulus package worth 26 billion euro ($32.9 billion) aimed at increasing infrastructure investments, supporting local authorities, as well as aiding the auto industry.
The dollar index , which tracks the greenback’s standing against a basket of currencies, has gained 18.22% in the past five months as risk aversion amid the global financial crisis has boosted the US dollar low-yielding status as a "safe-haven" currency.
Since late June, the US dollar has appreciated about 29% versus the pound sterling , 20% against the euro , and 31% against the Swedish krona .
Here is a look at where some of the world’s interest rates stand: