Pressure on RBI after key central banks cut rates

Banking Bureau, Agencies
Posted: Thursday, Oct 09, 2008 at 0126 hrs IST
Updated: Thursday, Oct 09, 2008 at 0126 hrs IST

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Banks likely to retain home loan rates PSBs outperform private banks in Q2 BoB net up 60% to Rs 634 cr SBI eyes second buy in Indonesia

Mumbai, Oct 8: slipped further. The Standard & Poor’s 500 Index lost 9.8 points, or 1%, to 986.43 at 11:09 a.m. in New York, while the Dow Jones Industrial Average retreated 126.4, or 1.3 % to 9,320.71.

The action follows the combined push of $247 billion made by the central banks in September to hold back acute liquidity shortage in the world markets. Wednesday’s move is also expected to do more of the same and encourage nervous investors to release cash into the markets taking advantage of the low rates.

“The central banks of the world have finally woken up to the gravity of the current situation,” said Charles Diebel, the head of interest rates strategy at Nomura. “This is a major step to convincing the world that they are serious about stabilising.”

Britain had earlier offered to pump at least 50 billion pounds ($87.2 billion) into its biggest retail banks to help them survive the crisis. British Prime Minister Gordon Brown said the global financial market had ceased to function after bad debts stemming from a collapse in the US housing market poisoned the system....

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