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Europe set for slowdown: IMF

The International Monetary Fund (IMF) expects the oft-repeated maxim that "if the US economy sneezes, the rest of the world catches a cold" will hold as far as Europe is concerned.

Mexico holds rates at 7.5%

The Bank of Mexico kept its benchmark one-day interbank rate at 7.5% for the sixth-straight month despite expectations that the US slowdown would impact Mexican growth.

Fed's Kohn calls for tighter regulation

A relaxation in banking supervision has contributed to the current turmoil by altering the nature of risk, Donald Kohn, the vice-chairman of the Federal Reserve, said in a call to strengthen rules for investment banks.

China raises reserve ratio

The People's Bank of China made a fresh bid to slow the country's overheating economy on Thursday, raising its reserve requirement ratio for the third time this year.

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