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‘Cold Fusion’ Is Citi's Answer to Fading Central Bank Firepower

  • Central banks have cut rates more than 600 times since 2008
  • Citigroup suggests governments and central banks unite forces
A Citibank branch in San Francisco.

A Citibank branch in San Francisco.

Photographer: David Paul Morris/Bloomberg

It’s time for central bankers to ask for help.

As the International Monetary Fund prepares to downgrade its outlook for the world economy again, monetary policy makers are running low of ammunition to fight a fresh downturn. Bank of America Merrill Lynch calculates they have reduced interest rates more than 600 times since the 2008 collapse of Lehman Brothers Holdings Inc. with the Reserve Bank of India extending the run on Tuesday by cutting its benchmark more than expected.