Financial Times FT.com

Central bank cuts may not be enough

By Krishna Guha

Published: January 10 2008 23:30 | Last updated: January 10 2008 23:30

The co-ordinated assault on the money market launched by the world’s central banks a month ago has succeeded in bringing down interbank lending rates – but this alone may not stop the US economy from falling into recession.

Hence the likelihood of a newly aggressive phase of interest rate cuts by the Federal Reserve, signalled by Ben Bernanke, the chairman, in Thursday’s speech .

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