Financial Times FT.com

Overview: Rate cuts fail to convince investors

By Michael Mackenzie in New York

Published: December 5 2008 19:03 | Last updated: December 5 2008 22:36

Central banks delivered big rate cuts this week as policy makers sought to shore up a slumping global economy and ward off the threat of deflation.

But lower borrowing costs did not prevent leading equity markets from recording big weekly losses, while government bond yields fell to fresh multi-decade lows on both sides of the Atlantic. Credit spreads widened to distressed levels, while oil and base metal prices slumped further.

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