US, Canada, England, Japan, Europe & Swiss central banks announce coordinated effort to lower US dollar swap pricing thru Feb
Edit - more from Marketwatch:
Global central banks announced Wednesday that they are acting to strengthen the existing swap lines that allow them to provide dollars to domestic banks in an effort to ease financial market tension. Under the new arrangements, the Federal Reserve has lowered the cost of the swap lines. The arrangments have also been extended until 2013. The central banks also agreed to set up bilateral swap lines so that all currencies can be made available if needed.
The new interest rate has been reduced to the dollar overnight index swap rate plus 50 basis points, or half a percentage point, from 100 basis points, the Fed said in a statement in Washington. The Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank are involved in the coordinated action, the Fed said.
“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the statement said.
ADP employment will be released shortly.