What will a rate cut mean for the consumers, the banking sector and the broader economy?
"We can still expect the consumer-banking sector to grow at least as much as the economic growth rate," said Jason Yu of Samsung Securities.
In between discussions at the US Treasury, chaired by the increasingly beleaguered Paulson, Alistair Darling was firming up the details of which banks would take how much from the Treasury's bail-out; and negotiating with the Icelandic government about the return of UK consumers' deposits in the banking sector.
To build a modern economy, China has to break up state-owned monopolies, encourage more consumer spending, create a trustworthy banking sector and reduce reliance on investment in real estate and heavy industry.
Few economists, though, expect the recovery to be very strong, as the economy remains weighed down by a still fragile banking sector and high consumer and government debt levels.
But some analysts fear that the market's negative sentiment towards property and construction stocks could seep into the banking sector and other consumer-related stocks.
Mr. Moëc of Deutsche Bank said low consumer demand, tight lending policies by a banking sector that is trying to shrink and corporate layoffs were are contributing to the decline.
Treasury financial secretary Sajid Javid said:"This government is determined to create a banking sector that works for consumers and serves businesses.
It is seen as key to reviving Greece's banking sector and restoring business and consumer confidence.
For the past year, the Bush and Obama administrations have used the program as a bailout smorgasbord, with entrees for the auto and mortgage industries, the securitization market for consumer goods, American International Group (See "What AIG Really Owes Taxpayers") and the banking sector at large.
