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WORLD> America
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Recession rears ugly head, global auto sales shrink
(Agencies)
Updated: 2008-11-04 10:28 FED Survey And Rate Cuts Most US and foreign banks have tightened lending standards across the board in the last three months, the US Federal Reserve said.
Its October senior loan officers report, a closely watched survey of lending conditions that is conducted every three months, also noted many banks made it tougher to qualify for a prime residential mortgage or credit card account. Banks are also growing more cautious about extending fresh credit due to the gloomy prospects for the economy. "Almost all domestic and foreign respondents pointed to a less favorable or more uncertain economic outlook as a reason for tightening their lending standards," it said. Other central banks have also noted the weakness. Following rate cuts from the Fed, China and Japan last week, the European Central Bank, Britain and Australia are expected to cut rates by at least 50 basis points this week. The efforts to buoy the world economy encouraged some investors to shop for bargains after world stock markets fell 20 percent in October, their worst month ever. On Monday, the MSCI index of stocks in the Asia-Pacific region outside Japan rose 5.9 percent, European shares were flat and US stocks ended little changed and mixed. |
