Source:
Bloomberg Oct. 7 (Bloomberg) -- Australia's central bank cut its benchmark interest rate by one percentage point, the most since a recession in 1992, triggering a rebound in Asian stocks on speculation other countries will follow to unlock credit markets.
``Rumors are now circulating that today's aggressive move by the Reserve Bank of Australia is the precursor for coordinated rate cuts by global central banks,'' said Katie Dean, a senior economist at Australia & New Zealand Banking Group Ltd. in Melbourne.
...
``It's obvious there's a need for synchronized global rate cuts,'' said Rory Robertson, an economist at Macquarie Group Ltd. in Sydney. ``You've got the most savage tightening in financial markets in anyone's living memory and all the big central banks have sat on their hands.''
Robertson said the Bank of England is ``long overdue'' to slash borrowing costs by up to 1 percentage point, followed by the U.S. Federal Reserve and the European Central Bank.
Read more:
http://www.bloomberg.com/apps/news?pid=20601080&sid=asKWj7OOpq1M&refer=asia
The article also notes the Fed's "stealth" rate cut yesterday.