German chancellor reemphasizes confidence as she comments on rate cuts

BERLIN, Oct. 8 (Xinhua) -- German Chancellor Angela Merkel Wednesday reemphasized the importance of confidence toward overcoming the current financial crisis when she commented on the joint action of the central banks cutting interest rates.

"We have to make sure that the real economy will not suffer from the financial crisis -- and so it's very, very important that confidence be restored. I see a basis for this joint measure is to rebuild confidence," said Merkel.

The European Central Bank, the U.S. Federal Reserve as well as the central banks of Britain, Canada, Sweden and Switzerland on Wednesday all announced rate cuts to reduce the pressure of credits freeze on those troubled banks.

On Tuesday evening Merkel emphasized the importance of restoring confidence in the financial market in an emergency session of parliament on the financial crisis in Berlin.

However, the central banks joint rate-cut action doesn't restore the confidence of the market or get a positive reflection on Wednesday, as both stock markets in Europe and U.S. experienced another day of plunge.