Central Banks Move to Stimulate Global Economy

The Bank of England bought assets and the Eurpopean Central Bank (ECB) and the People's Bank of Chins both cut key interest rates, in efforts to strengthen their respective economies, then successively the global economy at large. All three actions happened within one hour of each other yesterday. The ECB lowered interest rates to a record low of 0.75% and deposit rates to 0%, while Chinese central bank authorities cut China's benchmark rates by .31% to 6% on concerns that the economy was shrinking quickly. The Bank of England (BOE) announced its plan to inject liquidity into the market by purchasing assets worth 50 billion pounds (USD 777.65 B) and was bearish on its outlook. Many experts remain unconvinced that BOE's measures will be effective considering that the central bank had already injected 325 billion pounds into the money supply and the U.K's economy remains sluggish. The International Monetary Fund earlier this week urged the Federal Reserve to also act to stimulate the U.S. economy in another round of quantitativ easing. The Fed remains mum, however, today's unemployment report may force its hand if it comes far below expectations.