News
Venezuelan inflation shoots up to 22.5%
The Central Bank of Venezuela said on Wednesday that inflation in the metropolitan area of Caracas, the country's capital, hit 22.5% in 2007, the highest official rate in Latin America.
ECB could hike rates, says Orphanides
The European Central Bank's rate-setting governing council will not rule out raising interest rates, Athanasios Orphanides, a member of the council and governor of the Central Bank of Cyprus, said on Thursday.
Kuwaiti SWF could be next to invest on Wall Street
Bader Al-Sa'ad, the head of Kuwait Investment Authority, the state's sovereign wealth fund, indicated that his could be the next fund to inject funds into a finance industry clawing for capital in the aftermath of the subprime crisis.
Venezuela lops zeros off bolivar to curb inflation
Venezuela revamped the bolivar on Tuesday by slashing three zeros from the currency in a bid to dampen rampant inflation, which hit 20.7% in the 12 months to November.
China to name Ma Delun as vice governor
The People's Bank of China is set to appoint Ma Delun as vice governor of the central bank, local media reports said on Wednesday.
Interbank rates plummet as year-end passes
Pressure on the banking industry eased on Wednesday with spreads between money market and central banks' benchmark interest rates narrowing as the end-of-year liquidity panic passed. The falls indicate that the central banks' efforts to alleviate some of…
Cyprus and Malta join eurozone
The eurozone became a little larger on Tuesday as Cyprus and Malta, two Mediterranean islands, adopted the single currency.
Time has proved us right, says Trichet
The European Central Bank's (ECB) decision to inject hundreds of billions of extra euros into the money markets to alleviate tensions looks to be the correct one, says Jean-Claude Trichet, the president of the central bank.
Journalist defends Old Lady's "low morale" claims
Irwin Stelzer, the journalist who wrote last week that a senior Bank of England official had said the British chancellor and prime minister were blocking changes to banking regulation because of low morale, has described it as "a pity" that Mervyn King,…
Singapore SWF could invest $5 billion in US bank
Temasek, the Singapore finance ministry's sovereign wealth fund, could be the latest fund to cash in on Wall Street's subprime losses by injecting as much as $5 billion into Merrill Lynch in exchange for what could amount to a 10% stake in the American…
Fed to conduct auctions for "as long as necessary"
The Federal Reserve said on Friday it will continue to run Term Auction Facility auctions twice a month "for as long as necessary to address elevated pressures in short-term funding markets."
Cyprus cuts rates before eurozone entry
The Central Bank of Cyprus's rate-setting board on Friday unexpectedly slashed rates by 50 basis points to 4% to match the European Central Bank's benchmark rate.
Interbank rates edge down again
Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.
UBS shareholders uneasy with SWF investment
Shareholders at UBS, the Swiss bank, are threatening a revolt over capital injections worth Sfr 13 billion ($11.2 billion) from two sovereign wealth funds.
China lifts rates in new bid to halt inflation
The People's Bank of China on Thursday hiked rates for the sixth time this year in an effort to curb inflation now at an 11-year peak.
Japanese board all back 0.5% rate hold
The Bank of Japan's rate-setting board voted unanimously in favour of keeping its benchmark uncollateralised overnight call rate at 0.5% on Thursday.
Joint action lessening interbank spreads
In a sign that central banks' concerted action aimed at easing money market tension is doing just that, banks' borrowing costs fell further on Thursday.
Philippines cuts rates to 5.25%
The Central Bank of the Philippines's rate-setting board voted on Thursday to reduce its benchmark overnight borrowing rate to 5.25%. The decision marks the third rate cut in a row for the central bank.
Taiwan hikes rates to 3.375%
The board of the Central Bank of the Republic of China (Taiwan) on Thursday opted to raise its benchmark discount rate by 12.5 basis points to 3.375%.
Bank of England committee unanimously backed cut
All nine members of the Bank of England's monetary policy committee voted in favour of cutting rates to 5.5% earlier this month, minutes published on Wednesday reveal.
Federal Reserve hardens rules on subprime lending
The Federal Reserve on Tuesday issued a set of proposals for firmer regulations on subprime lending practices aimed at protecting consumers from unfair and deceptive home mortgage lending and advertising.
China SWF invests $5 billion in Morgan Stanley
The China Investment Corporation (CIC) became the latest sovereign wealth fund to capitalise on commercial banks' subprime losses on Wednesday, injecting $5 billion into Morgan Stanley, an American financial services group. The deal could lead to CIC…
Central bank injections reduce borrowing costs
Central banks' attempts to narrow the spread between their benchmark and money market rates by offering funds at attractive costs have met with some success.
Riksbank holds rates at 4%
The Riksbank's rate-setting board voted on Wednesday to keep its benchmark repo rate at 4% despite higher-than-predicted inflation.