Rate-slashing hits new heights as interest rates hit new lows

Central banks all seem to be trying to outdo each other in slashing rates.

Australia's rate slashing on Tuesday was followed on Wednesday by Thailand’s central bank cutting its benchmark interest rate by 1 percentage point to 2.75 percent, its biggest cut ever.

Then came the avalanche of rate cuts on Thursday.

Indonesia reduced its benchmark rate to 9.25 percent from 9.5 percent despite a weakening rupiah.

Then New Zealand cut its benchmark rate by a record 1.5 percentage points to 5 percent.

Europe provided a storming finish to the day. Bloomberg reports:

The European Central Bank delivered a 75 basis-point reduction in its main refinancing rate, the most in its 10-year history, while the Bank of England cut its benchmark rate to 2 percent, the lowest level since 1951...

Sweden’s Riksbank lowered its key rate by 1.75 percentage points, the biggest reduction in 16 years. The Danish central bank matched the ECB, cutting by 75 basis points.