Released on: October 13, 2008, 5:50 am

Press Release Author: Richard Drake

Industry: Financial

Press Release Summary: "Cornerstone Worldwide" on whether the RBA's rate cut sets a
precedent for global counterparts.

Press Release Body: Cornerstone Worldwide sources say that the Asian-based
investment management brokerage expects other central banks to follow the example
set by the RBA by significantly paring interest rates in the coming weeks.

The Reserve Bank of Australia cut its benchmark interest rate by 100 basis points in
response to deepening turmoil on the world's financial markets. Cornerstone
Worldwide believe that that this is a precursor to more coordinated action by other
major central banks over and above the record levels of liquidity being injected
into the interbank money markets.

Cornerstone Worldwide pointed to a US Federal Reserve decision to double the funds
it makes available to financial institutions needing to access the term auction
facility from $450bn to $900bn as an indication of how serious the crisis has
become.

As little as a month ago, commentators were suggesting that the next move in US
interest rates was likely to be up as the Fed sought to bolster its
inflation-fighting credentials but the exacerbation of global market turmoil
following the bankruptcy of Lehman Brothers and the bailing out of insurer, AIG has
seen such speculation give way to calls for rate cuts.

Cornerstone Worldwide analysts are thought to be unconvinced of the benefit of a
rate cut beyond providing a short-term fillip for equity markets.






Web Site: http://www.cornerstone-worldwide.com

Contact Details: Richard@weekly-online.info

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