As an example, I would like to point out one effective coordinated policy action recently undertaken by six central banks (the Bank of Canada, the Bank of England, the Bank of Japan, the ECB, the Federal Reserve, and the Swiss National Bank) – namely, the U.S. dollar liquidity-providing operations. These were aimed at addressing pressures in the global money markets (Chart 7).
The action was taken in November 2011 as a response to growing strains in U.S. dollar financial markets. Those central banks agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate would be the U.S. dollar overnight index swap rate plus 50 basis points.