Central Banks
UBS reveals $10 billion subprime loss
UBS, a bank, said on Monday that it would write down $10 billion-worth of subprime losses, the second largest amount revealed so far. The bank also said it could make a loss for the financial year because of its subprime liabilities.
Canada spells out SWF requirements
The Canadian government will block investment by state-owned enterprises, such as sovereign wealth funds, unless corporate governance and commercial standards are adhered to.
GIC could get 9% UBS stake from $9.8 billion loan
The Government of Singapore Investment Corporation (GIC), a sovereign wealth fund, on Monday said that its Sfr11 billion ($9.8 billion) investment in UBS, the bank, could lead to it acquiring as much as a 9% stake in the company.
Finland's Liikanen warns of dual threat
Erkki Liikanen, the governor of the Bank of Finland, said on Monday that the downside risks to growth have risen and inflation was set to accelerate.
Cyprus holds rates at 4.5%
The Central Bank of Cyprus's rate-setting monetary policy committee voted on Monday to keep its benchmark rate at 4.5% in its last scheduled decision.
Price fall the main cause of subprime delinquency
A fall in house prices has been the single biggest contributor to the rise in subprime delinquency levels, research published by the San Francisco Federal Reserve finds.
Credit channel has bigger effect on big banks
Rate hikes have a greater impact on the lending behaviour of bigger banks than smaller institutions, research published by the Chicago Federal Reserve finds.
UK cut does little to alleviate interbank tension
Sterling interbank borrowing costs fell only slightly in response to the Bank of England's 25 basis point rate cut on Thursday, indicating that the cut did little to alleviate liquidity tensions.
Indonesia cuts rates unexpectedly
Bank Indonesia's rate-setting board surprised markets on Thursday by lowering its benchmark rate by 25 basis points to 8%.
Peru keeps rates at 5%
The Central Bank of Peru's rate-setting board on Thursday voted to hold its benchmark reference rate at 5% after monthly inflation fell to 0.11% in November.
Korean rates on hold amid uncertainty
The Bank of Korea's rate-setting monetary policy committee kept the benchmark uncollateralised overnight rate at 5% despite an increase in inflation.
Subprime aftermath risks exacerbating imbalances
Financial market turbulence, together with a significant slowdown in the United States, could lead to and be exacerbated by a disorderly resolution of global current account imbalances, says the Bank of Canada's latest Financial System Review.
UK and Japan react to house prices, but not Fed
The Bank of England's and the Bank of Japan's monetary policy responds to house price changes, but the Federal Reserve's does not, research by the Riksbank finds.
Old Lady cuts rates to 5.5%
The Bank of England's rate-setting Monetary Policy Committee (MPC) voted on Thursday to cut its benchmark bank rate by 25 basis points after data suggested the UK economy was weakening.
Binned Bundesbank secrets found by hairdresser
A Berlin-based hairdresser has found secret drawings for a Bundesbank vault in a bin in the centre of the German capital.
ECB keeps rates at 4%
The European Central Bank's (ECB) rate-setting Governing Council held its benchmark rate at 4%. The vote contrasts with decisions in recent days to cut rates from the Bank of Canada and the Bank of England.
South Africa bids to cool economy with 50bp rise
The South African Reserve Bank looked to dampen rampant inflation by hiking rates by half a percentage point for the third time since July.
Japanese lawmakers want $100 billion SWF
Japanese politicians from the ruling Liberal Democratic Party want to start a $100 billion sovereign wealth fund in order to improve returns on foreign exchange reserves.
Eurozone needs to deal with global imbalances
The euro area must prepare for the orderly resolution of global imbalances, says Klaus Liebscher, the governor of the Austrian National Bank.
Japan must not be too late in hiking rates
The Bank of Japan needs to ensure that the pace of rate hikes in Japan is not too slow to risk the economy overheating, says Miyako Suda, a board member at the central bank.
UK moves to encourage SWF investment
The British authorities on Tuesday launched a charm offensive in a bid to coax sovereign wealth funds to invest in UK business.
Australia holds rates at 6.75%
The Reserve Bank of Australia's rate-setting board voted on Wednesday to leave its benchmark cash rate at 6.75%, an 11-year high.
Nigeria combats inflation with 50bp hike
The Central Bank of Nigeria's rate-setting board voted on Tuesday to raise rates by half a percentage point to 9.5% in a bid to fight inflation.
Interest rates set to climb in China in 2008
The People's Bank of China said on Wednesday that it would step up its fight against inflation by implementing tighter monetary policy controls and utilising other monetary tools in 2008.