News
Ability of Bric nations to revive global economy exaggerated, say analysts
The contribution of Brazil, Russia, India and China to the world economy is still too small to compensate for low demand in advanced economies.
Rand volatility a by-product of open economy: Sarb’s Mminele
South African Reserve Bank deputy governor Daniel Mminele says currency fluctuations are to be expected; stresses opposition to fixed exchange rate, dropping inflation targeting
Banks overestimate Basel III’s impact on growth: regulators
Basel body says hiking capital ratios by one percentage point will only cause 0.19% drop in potential GDP as lower rates will cushion the blow; industry bodies remain unconvinced
Vietnam continues dong devaluation
State Bank of Vietnam devalues the dong for the third time in the past 12 months
Iceland slashes on strengthening króna
Central Bank of Iceland cuts rates by one percentage point as it prepares to buy foreign currency following króna gains
Beijing welcomes world into interbank capital market
People’s Bank of China grants foreign banks and central banks access to interbank bond markets for the first time; move inspired by need to internationalise the renminbi
King writes third letter in a row to government explaining above-target inflation
Bank of England governor Mervyn King pens year's third letter to account for inflation of more than one percentage point above target; stresses health of long-term expectations, but economists unsure
Nordic and Baltic regions strike financial stability deal
Eight Nordic and Baltic countries sign Memorandum of Understanding on cross-border financial stability and crisis management
Bank's Haldane: regulators must consider changing shape and structure of finance
Executive director for financial stability at the Bank of England says regulators should reconsider the structure of financial contracts, markets, and institutions
Potential limit on terms could lead to Wellink’s departure
Dutch finance minister proposes a 14-year limit on the tenure of central bank presidents; proposal could bring Nout Wellink’s reign as president of the Netherlands Bank to an end next year
Ex-PBoC’s Su new chair of country’s biggest electronic payments provider
Former People’s Bank of China deputy governor Su Ning made chairman of China UnionPay, country’s biggest payments service; Su replaces Liu Tinghuan, also formerly of the central bank
Fed toughens rules on consumer protection
Federal Reserve announces measures to protect mortgage borrowers from deceptive practices
Indian inflation back in single digits on back of Reserve Bank hikes
Official data on wholesale price index show inflation fell to 9.97% last month
Spanish bank borrowing from ECB continues to balloon
Spanish banks continue to depend on European Central Bank after stress tests exposed capital shortfalls
Fed’s Hoenig: we risk repeating past mistakes
Federal Open Market Committee dissenter warns that US economy requires prolonged period of rebalancing that low rates alone cannot tackle
China overtakes Japan as world’s second largest economy
Figures from Japanese Cabinet Office show that China’s GDP exceeded that of Japan in the three months to June
FDIC creates new units as US regulators expand for Dodd-Frank systemic oversight
US regulators are hiring more staff in preparation for Dodd-Frank changes
‘Bail-in’ rather than bailout, says European markets group
Association for Financial Markets in Europe proposes regulator-enforced version of contingent capital to replace state-funded bailouts; proposals still troublesome, Goodhart says
Reserves growth does not boost lending: Fed study
Federal Reserve study says notion that money multiplier can improve bank lending is misguided
SNB posts smaller-than-forecast loss
Swiss National Bank’s first half loss $949m smaller than expected as gold and UBS bailout vehicle put in strong performances; reverses end-2009 purchase of UBS shares to guard against loss
Norway’s wealth fund slumps to first loss in a year
Government Pension Fund–Global posts $25 billion loss for first quarter; fund’s equity portfolio takes a beating, led by BP shares
Rate round-up: Chile ignores global tensions and hikes rates
Chile raises rates despite uncertainty in global recovery; Norway and South Korea hold; Ukraine cuts
De La Rue chief quits over printing errors
De La Rue’s chief executive James Hussey resigns after taking blame for faulty banknotes; shares plunge nearly 10%
Bank of Japan watching soaring yen closely
Japanese central bank says it is carefully monitoring strengthening currency and its implications for export market; plummeting confidence in the US recovery sparks worry