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Little demand for BoE cash

Bids for £15 billion-worth ($29.4 billion) of three-month loans from the Bank of England only just exceeded the amount on offer in spite of strong tensions in sterling interbank markets.

G7 backs FSF recommendations

Central bank governors and finance ministers from seven of the world's leading economies have welcomed the Financial Stability Forum's (FSF) regulatory response to the credit crunch and are set to implement several of its recommendations by the end of…

Crisis worst shock since Great Depression: IMF

The International Monetary Fund (IMF) warned that the US subprime fallout has precipitated the largest financial crisis since the Great Depression and that there is a 25% chance that it will cause a full-blown global recession.

Indonesian governor detained

Burhanuddin Abdullah, the governor of Bank Indonesia, has been detained at police headquarters by the country's anti-corruption agency, Komisi Pemberantasan Korupsi (KPK), a day after parliament approved economics minister Boediono as the next central…

Trichet indicates rates to remain at 4%

Jean-Claude Trichet, the president of the European Central Bank (ECB), signalled that the Governing Council will leave rates unchanged for the foreseeable future despite mounting evidence that the credit crunch could severely impact the real economy.

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