Following on the footsteps of the US Fed, the European Central Bank (ECB) and the Bank of England (BoE), too have cut rates. The BoE cut its key interest rate by an unprecedented 150 basis points, to 3%, the lowest sicne 1954. The ECB in contrast was more restrained, cutting its benchmark rate by 50 basis points to 3.25%. Besides these two, the Swiss, Danish and Czech Republic's Central Banks too cut rates to 2%, 5% and 2.75% respectively.
Growing concerns about a sharp compression in economic growth coupled with easing inflationary expectations are behind many of these rate cuts.
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