Responding to the crisis on Wall Street overnight, Mr Rudd told a special press conference that the decision by the American congress not to pass the emergency $US700 billion Wall Street bail out package was "disappointing" and a "bad development".

Mr Rudd said he had spoken this morning to British Prime Minister, Gordon Brown, and agreed the two countries would urge the US congress to pass or consider similar measures.

He said it was necessary for the stability of global financial markets.

"We understand that a proposal will be, in one form or another, should be re-submitted to the Congress this Thursday," he said.

Mr Rudd said the Australian circumstance was "fundamentally different" to those in the US.

However, market analysts were today forecasting an interest rate cut of 0.5pc (50 basis points) when the Reserve Bank meets next week in a bid to stimulate the economy.