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BoE: the worst is over

Financial conditions are set to improve in the coming months as investors recognise that prices in credit markets now overestimate risk, the Bank of England said on Thursday.

OECD inflation hits 3.5%

CPI inflation in the 30 member economies of the Organisation of Economic Co-operation and Development (OECD) rose to 3.5% in the year to March, up from 3.4% the previous month.

Japan lowers growth forecast

The Bank of Japan has chopped more than half a point off its growth estimate for 2008 and warned that in a highly uncertain climate, downside risks to the economy could further limit expansion.

IMF governors pass reform measures

The vast majority of the International Monetary Fund's (IMF) governing board has backed a raft of reforms that will see emerging markets have a greater say in how the organisation is run.

OMO changes must temper money-market woe: King

Mervyn King, the governor of the Bank of England, said the central bank must ensure its revised system for open market operations leads to overnight interbank rates remaining close to its official rate regardless of financial market conditions.

UK counterfeit seizures fall for 3rd straight year

The number of counterfeit banknotes in circulation confiscated by the British authorities plummeted by almost a quarter last year. The total face value of counterfeit notes found also fell by a similar degree.

Fed welcomes SWF investment

Scott Alvarez, the general counsel of the Federal Reserve, has told the US Senate that the central bank welcomed investments by foreign sovereign wealth funds in American banks and financial institutions.

Probe into rumour-mongering widens

The Financial Services Authority (FSA) in Britain is teaming up with other financial services watchdogs as part of an expanding investigation into allegations of market abuses surrounding sudden drops in the share prices of financial institutions.

Big rate hike in Serbia

The National Bank of Serbia has raised its key policy rate to 15.25% from 14.5%. Radovan Jelasic, the governor of the central bank, said the move came in response to rising inflation, caused by growing salaries, record oil prices and political crisis.

Swiss join calls for bank pay reform

Jean-Pierre Roth, chairman of the governing board of the Swiss National Bank, has urged a complete rethink of commercial banks' corporate governance and pay schedules in the wake of the credit crisis and recent trading scandals.

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