<b>Central banks in North America, Europe cut rates by 0.5%</b>

The US Federal Reserve said it cut federal funds rate by 0.5% to 1.5%. This action was taken in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures.
 
A joint statement of leading central banks of North American and European countries said, "Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets."

The joint statement also added that inflationary pressures have started to moderate in a number of countries, partly reflecting a marked decline in energy and other commodity prices.

Bank of England, European Central Bank and central banks of Canada, Sweden, Switzerland cut key interest rates by 0.5% as well. The joint statement said that the Bank of Japan expressed its strong support of these policy actions.