Vienna - The Austrian government decided Wednesday to provide unlimited protection for private savings and to guarantee bank liquidity, according to Chancellor Alfred Gusenbauer and Vice Chancellor and Finance Minister Wilhelm Molterer.

By doing away with the 20,000-euro (27,100-dollar) limit on savings guarantees, Austria was following the lead of Germany, which announced Sunday it would introduce unlimited protection.

Stockholm - Sweden's central bank said Wednesday it was to cut its interest rate by 0.50 percentage points to 4.25 per cent.

The cut was to take effect October 15, the Riksbank said, adding that the move was part of a coordinated measure with five other central banks.

The bank's board of governors noted that "economic growth in Sweden is slowing down and that inflationary pressures are diminishing as an effect of the financial crisis."

The Riksbank said it was to revise its forecast for both inflation and GDP, and noted that "the labour market is also showing clearer signs of weakening."

London - The Bank of England Wednesday cut interest rates by 0.5 percentage points to 4.5 per cent, it was announced Wednesday.

Prime Minister Gordon Brown told parliament that the decision to reduce the key interest rate had been taken as part of a worldwide action to combat economic turmoil.

The announcement came a day ahead of the end of the meeting of the Bank of England's Monetary Policy Committee (MPC) Thursday.

Interest rates have remained unchanged at 5 per cent for the past five months, as the Bank of England gave priority to the fight against inflation.

New York - The ailing US bank Wachovia is set to be divided between banking rivals Citigroup and Wells Fargo, according to US media reports on the ongoing takeover battle over the United States' fourth-largest bank on Wednesday.

Wells Fargo would receive the bulk of Wachovia's branches and deposits, while a smaller share would go to Citigroup, which is currently looking for possible partners outside the banking sector, the Wall Street Journal reported.

With the takeover of Wachovia, both rivals hope to become top players in the US private banking business.

Riga- The economic outlook is grim for central and eastern Europe (CEE) in general and the Baltic states in particular, according to a report released Wednesday by Scandinavian bank SEB.

London - The Bank of England Wednesday cut interest rates by 0.5 percentage points to 4.5 per cent, it was announced Wednesday.