France's ratings downgrade by Standard and Poor's Friday will have a series of impacts on the eurozone’s second-largest economy, including raising the cost of borrowing for the state and ultimately for average households in France.
Stocks were down Wednesday as the US Federal Reserve announced a radical plan to shift $400 billion in short-term bonds to longer-term Treasury bonds, in a bid to lower interest rates and jumpstart the country's flagging economy.
The European Central Bank has raised interest rates for the first time since the 2008 financial crisis. ECB President Jean-Claude Trichet, pictured, used phrasing at a news conference that suggested the possibility of further hikes.
Chinese inflation soared past market forecasts to a 28-month high of 5.1% in November and its affects look likely to spread beyond food prices, putting pressure on the government to implement an interest rate hike.
The European Central Bank is to maintain its key interest rate at a record low 1.0 percent. ECB President Jean-Claude Trichet (photo) said it would fight inflation while ensuring unlimited amounts of cash to commercial banks until the end of 2010.
In order to prevent any deflation, the US Federal Reserve has decided to maintain its interest rates between zero and 0.25%, as it has done for the last year.
Despite tighter lending conditions and fears of deflation, the European Central Bank (ECB) kept its main interest rate unchanged at a record low of one percent on Thursday. The Bank of England also left its key rate unchanged at 0.5 percent.
The European Central Bank (ECB) warned on Thursday that the Eurozone economy would contract 4.6 percent this year, much more than previously feared. Its interest rates is being kept at a record low of 1.0 percent.
Russia's Central Bank cut its key interest rate by half a percentage point to 11.5 percent. It is the third rate cut in six weeks, as Moscow tries to stimulate bank lending to help its economy through recession.
The Icelandic central bank announced on Thursday a one percent interest rate cut to 12 percent. This fourth drop in three months comes after Iceland suffered a major economic blow in October when its three main banks collapsed.
