Central Banks Loan Move Markets Soar

Central Banks Loan Move Markets Soar.

The world’s biggest central banks have unveiled plans to stimulate lending, which has resulted in Asian markets rising.  Japan's Nikkei index closed up 1.9%, while South Korea's Kospi was 3.7% higher at the end of the day and Hong Kong's Hang Seng was up 5.7%.

The US Federal Reserve, the European Central Bank, and the central banks of the UK, Canada, Japan and Switzerland will take coordinated action from 5 December.  China have also stated that they would free up money for its banks to lend.

The central banks and policymakers have been criticised previously for not doing enough to reassure investors.  

The plan unveiled by the central banks in the US and Europe is aimed at making it easier and cheaper for banks to obtain US dollars.  The central banks will also provide easier access for lenders to other major currencies as and when they need it.