News
Subprime reaction mirrors past crises - Greenspan
Alan Greenspan, a former chairman of the Federal Reserve, has said that the reaction of bankers to the subprime crisis is identical to their behaviour during the 1987 crash and the near-collapse of the Long Term Capital Management hedge fund in 1998.
Iran to consider redenomination
The Central Bank of the Islamic Republic of Iran will look into the possibility of knocking three zeros off its rial currency.
Venezuela set to publicise new currency
The Venezuelan Central Bank will launch a nationwide campaign to familiarise consumers with its new notes and coins, which will come into circulation at the start of next year.
Bahrain's payment system a success
The Central Bank of Bahrain said that its real time gross settlement (RTGS) payment system introduced on 9 August, has "dramatically speeded up the flow of money", leading to a more efficient financial sector.
Cyprus holds rates
The Central Bank of Cyprus decided to leave its benchmark rate at 4.5% on Monday.
Bank of Russia to widen eligible collateral
The Central Bank of Russia (CBR) intends to expand the list of paper involved in the refinancing mechanism with 'securities of non-rated borrowers', according to the Russian newspaper Kommersant. "This should make life easier for second- and third-tier…
Riksbank to publish repo path, hikes rates
The executive board of the Riksbank will publish forecasts for the future repo rate path and a number of other important variables in connection with each monetary policy meeting. The central bank decided on Thursday to raise the repo rate by 25 basis…
New governor for Iran
Tahmasb Mazaheri, a former Iranian finance minister, was appointed yesterday as head of the country's central bank.
Poland looking to join ERM2, says Skrzypek
Poland will be able to cut its general government deficit to below 3% of GDP by 2009, as pledged by the government, which would allow it to join the exchange rate mechanism ERM2 the same year, deems National Bank of Poland (NBP) governor Slawomir…
Russia hit by market turbulence
The net capital inflow to Russia hit a record $67.1 billion in the first half of 2007, the Central Bank of Russia (CBR) has said.
Gulf may escape contagion
Rasheed Al Maraj, the governor of the Central Bank of Bahrain, said Gulf markets are unlikely to see a major fallout from the slump in USsubprime mortgages as most local companies have their core businesses in the area.
BoE holds rates, aids markets
The Bank of England voted on Thursday to keep the base rate at 5.75% after offering the previous day to inject extra funds into the money markets next week if liquidity problems persist.
ECB holds rates, offers injection
The European Central Bank (ECB) decided Thursday to keep its benchmark rate at 4%, after promising extra liquidity to the markets Wednesday.
Ex-Fed governor Gramlich dies
Former Federal Reserve governor Edward Gramlich has died of leukemia. He was 68. Gramlich served the Fed from 1997 to 2005.
Bank of Canada holds rates
The Bank of Canada said on 5 September that it is maintaining its target for the overnight rate at 4.5%. The operating band for the overnight rate is unchanged, and the bank rate remains 4.75%.
Credit crunch has "sown seeds of downturn"
Jon Moulton, a well-known private equity investor, said that the credit crunch had " sown the seeds of a major downturn," the Financial Times reported.
OECD sings praises of central banks
Jean-Philippe Cotis, the chief economist of the OECD, had warm words for central banks Wednesday when he presented the organisation's interim assessment of the global economy in between the spring and autumn editions of the Economic Outlook.
Fed's Lacker "unconvinced" of need for cut
Jeffrey Lacker, the president of the Richmond Federal Reserve intimated that he was not yet convinced of the necessity for a cut in the Fed's overnight policy rate, and said that, although he would back a cut if necessary, he remained wary of inflation.
Israel launches same-day clearing system
The Bank of Israel launched its real-time gross settlement system (RTGS) for bank transfers on 3 September. This is part of the central bank's reforms of Israel's payment and clearing systems.
Australia keeps benchmark rate unchanged
As widely expected, the Reserve Bank of Australia left its overnight cash rate target unchanged on Wednesday at an 11-year high of 6.5%. The central bank had previously raised borrowing costs on 8 August, the first move since November last year.
Thailand encourages e-payment
The Bank of Thailand plans to reduce cash payments and cheque payments by promoting e-payment with consumers and the public and private sectors.
Cost of UK borrowing hits ten-year high
Banks borrowing sterling over a three-month period yesterday found the cost at a near-ten-year high as the major UK financial institutions sought medium-term funding to help them survive the financial volatility in the credit markets.
EU's Almunia expects rates to tighten
Speaking at a conference organised by Nueva Economia, Joaquin Almunia, the EU economic and monetary affairs commissioner, intimated that he expects Eurozone interest rates to tighten further. He also warned that financial market volatility might carry…
Pakistan banking supervision move
The government of Pakistan is planning to take banking supervision away from the central bank and bring banks under the regulatory control of the Securities and Exchange Commission of Pakistan (SECP) through new legislation, the 'Financial Market…