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Central Banking

Pre-crunch poll supports Basel II stability claim

The introduction of the Basel II regulatory framework, which has faced a barrage of criticism in the wake of the credit crunch, will make the financial system sounder and encourage better risk management, according to a poll conducted the Professional…

Norway's oil fund avoids FX after recent losses

The Bank of Norway said it would not buy foreign exchange for its sovereign wealth fund, the Government Pension Fund, in December. The announcement follows news that Nkr104.4 billion ($18.9 billion) was knocked off the value of the fund, a store of the…

UK's King gloomy on economic conundrum

Mervyn King, the governor of the Bank of England, said on Thursday that the economic outlook is "uncomfortable" because the problems of the credit crisis are now coupled with burgeoning inflationary pressures.

UAE governor denies revaluation rumour

Sultan Bin Nasser Al-Suwaidi, the governor of the Central Bank of the United Arab Emirates, on Thursday moved to deny reports that the central bank would allow the value of the dirham to rise by up to 5% on Sunday.

Czechs hike rates to 3.5%

The Czech National Bank's rate-setting board voted on Thursday to hike rates by 25 basis points to 3.5% after inflation rose to a six-year high in October.

Beige book reveals reduced US expansion

The latest edition of the Federal Reserve's Beige Book shows that consumer spending has slowed and that the financial services industry has become a drag on growth, but that the economy grew nonetheless.

FOMC members disagree on risks to growth

Stock markets around the world rose sharply on Wednesday after Donald Kohn, the vice chairman of the Federal Reserve, suggested that the Federal Open Market Committee (FOMC) would cut rates in December. Kohn's comments differ sharply from those made by…

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