Policy maker comments on c.bank action, crisis
SINGAPORE (Reuters) - Policy makers and central banks globally have mobilised to try to calm investors and prevent the upheaval on Wall Street from sending financial markets into a dizzying sell off.
The following are highlights of comments from policy makers on Thursday.
FEDERAL RESERVE, BANK OF CANADA, BANK OF ENGLAND, EUROPEAN CENTRAL BANK, SWISS NATIONAL BANK, BANK OF JAPAN, COMMON LINE IN ALL STATEMENTS ANNOUNCING CO-ORDINATED ACTION:
"These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. These central banks continue to work together closely and will take appropriate steps to address the ongoing pressures."
- BANK OF JAPAN GOVERNOR MASAAKI SHIRAKAWA:
"We participated in the scheme as there is an increased likelihood that the reduced liquidity in the dollar money market will affect the yen money market."
"As Japanese banks have been cautious about foreign currency funding given recent market developments, I don't have any particular concern about Japanese financial institutions' foreign currency funding. Today's step by the BOJ is aimed at further promoting smooth yen money market operations, maintaining a smooth mechanism and seeking market stability."
"Tension in global financial markets has increased rapidly and there has been unexpectedly elevated pressure in short-term market funding. To address this obvious worsening in the financial market environment, central banks judged that immediate coordinated action was appropriate.
"As tension in global markets is increasing, central banks in major countries have been closely exchanging views and information. Continued...
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