News
Fed looks set to lower interest rates
Ben Bernanke, the US Fed chairman, and his central bank colleagues meet on Tuesday to make their next decision on interest rates, and appear set to lower the 5.25% federal funds rate to prevent a housing collapse and credit crunch from forcing the US…
EU central bankers decide against bail-out rules
Finance ministers and central bankers from the European Union decided at a weekend meeting in Portugal not to draw up fixed rules in advance on bailing out banks and other financial institutions with cross-border operations in the EU.
Bank of Korea admits to monetary policy problems
Lee Seong-tae, governor of Bank of Korea, said the central bank has problems in carrying out monetary policy effectively because of cross-border capital transactions that lead to increases in the money supply in spite of rises in key interest rates.
Rates tumble in Venezuela
Overnight lending rates in Venezuela fell sharply last Thursday, after the country's central bank resumed injecting cash into the financial system, a week after it had suspended the practice.
Bank of England moves to aid mortgage lender
The Bank of England said on Friday that it would provide a liquidity support facility for Northern Rock, a UK mortgage lender.
Canada's Dodge repeats calls for transparency
David Dodge, the governor of the Bank of Canada, underlined his argument that a lack of transparency was behind the recent turmoil on Friday.
Turkey makes surprise rate cut
The Central Bank of the Republic of Turkey unexpectedly decided to lower interest rates by 25 basis points on Thursday.
Chile raises rate
The Central Bank of Chile decided on Thursday to raise its interest rate by 25 basis points to 5.75%.
China raises rates again
The People's Bank of China decided on Friday to raise rates for the fifth time since March in order to curb rising inflation.
Volcker critical of World Bank integrity unit
Paul Volcker, a former chairman of the Federal Reserve, has lambasted the World Bank's governance and anti-corruption strategy.
Bank of England injects £4.4 billion extra
The Bank of England loaned £4.4 billion ($8.9 billion) more than the forecast reserves target on Thursday after promising to do so last week if overnight lending rates remained high.
Bank of Finland lines up academic for board
Seppo Honkapohja, a professor of macroeconomics at the University of Cambridge, is set to join the board of the Bank of Finland for a five-year term beginning January 2008.
New Zealand holds rates
The Reserve Bank of New Zealand decided to keep its benchmark official cash rate (OCR) at 8.25% on Thursday.
SNB adjusts three-month inter-bank target
The Swiss National Bank said on Thursday that it was increasing its three-month Libor (London inter-bank offered rate) by 25 basis points to 2.75% in an effort to calm the Swiss franc money market.
King refuses to aid markets
Mervyn King, the governor of the Bank of England, said on Wednesday that he believed providing additional liquidity against a wider range of collateral and over longer periods "sows the seeds of a future financial crisis".
Bank of Italy closes more than a third of branches
The Bank of Italy said on Wednesday that it will close 33 of its 97 branches as part of the reorganisation of its network.
Bosnian CB must improve vastly to meet EU level
The EU said on Wednesday that the Central Bank of Bosnia and Herzegovina (CBBH) needed to make "significant progress" in order to meet the trade bloc's standards.
Qatar to keep riyal pegged to dollar
Abdullah al-Thani, the governor of the Qatar Central Bank, said that the riyal would remain pegged to the US dollar on Tuesday.
ECB carries out three-month tender
The European Central Bank injected €75 billion into the money markets on Wednesday as part of a three-month refinancing operation.
Turmoil prompts supervision recommendations
New rules for conduits, special purpose vehicles (SPVs) and rating agencies must be introduced to stop another subprime crisis, according to several shadow financial regulatory committees. The Basel II framework must also be reassessed because of its…
Japan safe from subprime threat
The Bank of Japan said on Tuesday that the country's financial institutions were unlikely to be drastically affected by the subprime crisis in the US.
Sarkozy and Merkel call for more transparency
Nicolas Sarkozy, the French president, and Angela Merkel, the German chancellor, said on Monday that hedge funds and rating agencies must face greater scrutiny.
Australian inter-bank rates hit 11-year high
Australian three-month bank bill rates reached 7.08% on Tuesday, 58 points above the central bank's benchmark rate and their highest level since July 1996.
Chinese inflation reaches 6.5%
China's consumer price index rose 6.5% in August, prompting speculation that the People's Bank of China will be forced to raise rates again.