"My understanding is that the Russian government is ready to make a contribution with an extension of the loan and a reduction of the interest rate, " said the EU's top economic official, Olli Rehn.

BBC: Shock in Cyprus as savers face bailout levy

But if this trend in private bank money creation continues, it does augur for higher rates of monetary inflation, especially, as Chairman Bernanke suggested at Jackson Hole in August, if aided and embedded by a reduction in the rate of interest the Federal Reserve pays banks on those excess reserves.

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What was announced was a maturity extension of the arrangements and a reduction in the interest rate charged.

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The gist of the deal calls for Greece to cut its debt to 124% of GDP by 2020 and a reduction in the interest rate charged to Greece on the loans.

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In the Lords (from 2.30pm) questions cover the government's plans to commemorate the centenary of World War I, the need for a reduction in domestic food waste, and the interest rate rigging scandal in the City.

BBC: Week ahead

Following two days of sell-offs in stock markets across the globe--and a week ahead of its Federal Open Market Committee meeting (when the rate cut was expected)-- the Fed slashed short-term interest rates by three-quarters of a percentage point, its single most dramatic rate reduction since 1984.

FORBES: Confidence Game