The Federal Reserve has announced a benchmark interest rate cut by 50 basis points to a new range of 4.75%-5%. Daryl Guppy, former national board member of the Australia China Business Council and Australian representative of the Silk Road International Chamber of Commerce, noted that the Fed's giant rate cut reflects the debt crisis of the U.S, and the impacts will flow to all regional currencies that are tied to the dollar peg. Many countries may be forced to take rate cuts that are not entirely suitable for local conditions, he said.

In addition, Guppy noted that the Fed's rate cut falls right into China's policy objective to attract foreign capital set during the Third Plenum. (Chen Tianhao)