The Latest News on Global Economics

The three-month dollar LIBOR fell 5 basis points to 4.5 percent today versus 4.55 percent yesterday, according to the British Banker’s Association.

The global financial meltdown has forced six central banks to coordinate their efforts to ease the detrimental economic effects of the worst ever global financial collapse by lowering interest rates.

The Fed announced today a cash injection of $95 billion in exchange for a 2-year bridge loan and a 79.9% equity stake.

The credit crisis on one hand, the bankruptcy of some of the largest US financial institutions and investment banks, and finally the inflationary storm that rockets energy and food prices.

Lufthansa employees won the battle with inflation, for the time being, as they managed to get a 5.1% raise in their wages, after a week’s strike and hard negotiations with the German airline’s management team.

The British Pound continues to suffer against the Euro, and this trend is likely to continue for most part of the next year.

The pound keeps falling both against the euro and the dollar, and Mervyn King says he is concerned about the present and prospective period of above-target inflation.

Higher borrowing costs for the private sector or else tighter bank lending terms would naturally lead to a reduction in demand.

Slowing GDP growth prospects & rising inflation have been the two main concerns for many countries for some time.

A week ago, there was a glimmer of hope in the world with regards to the food crisis. Not anymore.

Despite the fact Fed policy makers cut the rates seven times already since September 2007, which amounts to a total of 3% decrease in borrowing costs, the average rate for a 30-year fixed mortgage dropped only half a percentage compared to the same period.