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European Central Bank

If there was something that was very difficult to foresee was that the European Central Bank decided to make a cut in interest rates. If there was something more difficult to predict is that such a cut would be 50 basis points. And if you like, something much harder still, it was foresee such a cut of 50 basis points to occur outside the pre-set meetings of the ECB to evaluate the progress of prices in the eurozone and the decisions deemed as a result. They realized that, finally and after all, there is no much difference between developed countries and those developing in what refers to the decisions of economic policy in crisis situations? Developed economies have spent decades criticizing decisions made by countries in developing amid the crisis. Today, the first world countries are taking the same measures without considering the consequences which it may have in the future, although this would appear not to import them. Last days were, without a doubt, loaded with shocking news. Both was the flow of news that one did not quite digest them, that others of similar magnitude immediately appeared.

For example, while in Iceland was established a banking playard (perhaps advised by some Argentine), in England it was decided the partial nationalization of private banks in a plan estimated at 60,000 million euros. Nationalization, bailouts, higher guarantees for bank deposits, direct loans from the Fed to the companies, etc, etc, all is used when there is a clear solution to stop this crisis. In this context, a measure that will generate a great impact in the markets, which did not show a positive reaction before the approval of the American mega plan or the increase in the amount of guaranteed deposits in European banks was imperative. Is for this reason that the U.S. Federal Reserve.UU., the European Central Bank (ECB), the Bank of England and the central banks of Switzerland, Canada and Sweden decided a cut coordinated in their 50 points reference interest rates Basic.

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