Monday, October 13, 2008

Market rally after unfreezing liquidity

Global markets are rallying after G7, G20 meetings over the weekend.

Money market rates eased on Monday after Europe's central banks said they would lend commercial banks as much U.S. dollar funding as they need.

In the latest joint bid to thaw frozen money markets the U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank also scrapped their existing dollar auction systems and replaced them with a new fixed rate system.

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