90 at 9: Fed to keep rates near zero; ECB's massive emergency loans; OECD sees green shoots

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with ASB, including news from the US Federal Reserve that it has held its official interest rate near zero % and will hold it there for an "extended period". The Fed saw the economy slowing, but at an easier pace, and it pledged to keep buying back bonds and printing money. Meanwhile, across the Atlantic, the European Central Bank lent a record US$619 billion to 1,100 banks to pump cash into a weak banking system. However, in a fresh sign of 'green shoots', the OECD has improved its forecasts for GDP for its member countries. It now sees a 4.1% contraction in 2009, which is better than its previous forecast for a 4.3% contraction. It also now sees 0.7% growth in 2010, versus its previous forecast for a 0.5% contraction next year.