The European Central Bank (ECB) yet again has refused to cut base rates, despite the current melt down in the financial markets and the cut by the Bank of England of 0.25% yesterday.
Jean-Claude Trichet, the ECB president, yesterday held the eurozone rate at 4%.
Notwithstanding the ostrich policy of the ECB, and lacklustre action of the Bank of England, the US Federal Reserve is expected to cut at least another 0.25% from its 2.25 per cent rate this month.
However, until the leading central banks co-ordinate their policies (not just interest rates) this crisis will not be abated.
When will the Bank of England and ECB wake up?
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