Posts

Showing posts with the label Central Banks

World | Central Banks | Reuters | Bank of Japan to Raise Rates again on May 26 | Monday, May 23, 2022:

 Source: reuters.com Bank of Korea to raise rates again on May 26, to hit 2.25% by year end: Reuters poll May 23, 20227:48 PM GMT-5Last Updated 36 min ago 3-4 minutes The logo of the Bank of Korea is seen on the top of its building in Seoul, South Korea, March 8, 2016. Picture taken on March 8, 2016. REUTERS/Kim Hong-Ji Summary BOK rate decision meeting starts around 9 am local time on Thursday BENGALURU, May 24 (Reuters) - South Korea's central bank is likely to hike its benchmark rate at a second consecutive meeting on Thursday to combat inflation running at more than double its target, taking rates higher by year end than previously thought, a Reuters poll showed. Inflation in Asia's fourth-largest economy rose to more than a 13-year high of 4.8% in April, as repercussions from the Russia-Ukraine war and a weakening won , down 7% this year, ramped up prices. Inflation has stayed above the central

News | Business | Central Banks | Bank of England: Bank of England asks banks about readiness for negative rates

Image
  1 minute - Source: CNBC Mounted police officers sit in outside the Royal Exchange and the Bank of England in London on June 17, 2020. TOLGA AKMEN | AFP via Getty Images The Bank of England asked banks on Monday for information about their readiness for the possibility of zero or negative interest rates, following up on its announcement last month that it was considering how to take rates below zero if needed. “As part of this work, we are requesting specific information about your firm’s current readiness to deal with a zero Bank Rate, a negative Bank Rate, or a tiered system of reserves remuneration – and the steps that you would need to take to prepare for the implementation of these,” Deputy BOE Governor Sam Woods said in a letter to banks.  Enable Ginger Cannot connect to Ginger Check your internet connection or reload the browser Disable in this text field Edit Edit in Ginger Edit in Ginger ×

News | Central Banks | Markets: Global stocks drop after Fed minutes leave investors uneasy

Adam Samson and Hudson Lockett  4-5 minutes - Source: FT Stock markets were knocked on Thursday after the US Federal Reserve signalled it was not immediately prepared to deploy further unconventional measures to shore up the world’s biggest economy. Equities in Europe and Asia sustained selling pressure after a summary of the US central bank’s July meeting indicated “many” members of its policy-setting committee were unwilling to launch measures that would attempt to place a cap on yields of US government bonds. Europe’s Stoxx 600 index declined 1.4 per cent in early trading on Thursday as indices in London, Paris and Frankfurt dropped. MSCI’s broad gauge of Asia-Pacific stocks shed 1.6 per cent while futures tracking Wall Street’s S&P 500 suggested the index would fall around 0.7 per cent. The rebound in global markets since a rout in February and March, which took Wall Street stocks to record peaks this week, has been

News | Business | Central Banks | Lebanon: Controversy over seigniorage in Lebanon is a warning sign

John Plender  5-6 minutes - Source: FT The controversy over the Lebanese central bank’s decision to record seigniorage as an asset in its crisis-torn balance sheet is no parochial matter. Across the world, strange things are happening to this important source of income for central banks and finance ministries. Described as the profit made from printing money, seigniorage arises because currency carries a zero nominal interest rate and commercial banks receive, at best, paltry interest on the reserves they hold at the central bank. Seigniorage is a valuable asset, because issuing money and investing it in low-risk securities has always been a profitable business. Traditionally, central banks have treated the profits in accounting terms as an income stream rather than an asset. Yet putting a capital value on the discounted future income is not entirely outrageous. Indeed, it is odd that what is arguably any central ban

News | Central Banks | Deutsche Bank: Deutsche Bank quarterly loss tempered by surge in bond trading

Olaf Storbeck  4-5 minutes - Source: FT Deutsche Bank has increased its forecast for revenue this year after it posted the strongest surge in fixed-income trading revenue in almost eight years, more than offsetting €761m of coronavirus-related loan loss provisions. Germany’s largest lender on Wednesday said it was expecting that revenue this year would be “essentially flat”, compared with the previous guidance of a slight decrease. The loan loss provisions were almost five times higher than a year ago but better than the €818m expected by analysts. Despite the better than expected results, executives cautioned the surge in trading revenue would likely subside in the second half of the year, and Deutsche’s net loss attributable to shareholders for the quarter nearly doubled to €77m. Christian Sewing, chief executive, is in the second year of a radical restructuring plan that will cut about 18,000 jobs and reduce the s

News | Business | Economy | Central Banks | ECB: The ECB will be wary of killing the market rally as it holds fire on Thursday

Image
Annette Weisbach 3-4 minutes - Source: CNBC 04 November 2019, Berlin: Christine Lagarde, President of the European Central Bank (ECB), will give the laudation to President of the Bundestag Schäuble at the “VDZ Publishers’ Night 2019 picture alliance | picture alliance | Getty Images The European Central Bank and its president, Christine Lagarde, face another crucial test this week as they hold off on any new monetary stimulus, but try not to destroy a belief that more firepower is available. The Frankfurt institution will likely stay put after last month’s extension and enlargement of its PEPP (Pandemic Emergency Purchase Program), which climbed by 600 billion euros ($686 billion) to 1.35 trillion euros. “As (the) lender of last resort, the ECB has stabilised markets and prevented a major financial crisis which would have exacerbated the recession,” said Florian Hense, an ECB watcher at Berenberg Bank in a recent researc

News | Economy | Central Banks | Bank of England: Bank of England's Bailey up-ends QE unwind policy

2-3 minutes - Source: CNBC Bank of England Governor Andrew Bailey said on Monday that the central bank should start to reverse its quantitative easing asset purchases before raising interest rates on a sustained basis, a reversal of long-standing BoE policy. The BoE increased its bond purchase target to 745 billion pounds ($922 billion) last week, and in March it cut its main interest rate to a record low 0.1%. But Bailey said this level of central bank asset purchases “shouldn’t always be taken for granted”. “When the time comes to withdraw monetary stimulus, in my opinion it may be better to consider adjusting the level of reserves first without waiting to raise interest rates on a sustained basis,” Bailey wrote in an article for Bloomberg. Under its previous governor Mark Carney, the BoE said it would raise interest rates materially before starting to sell past asset purchases back to the market, as it viewed interest rates as

News | Central Banks |Bank of England: Bank of England adds another £100 billion to bond-buying program to combat coronavirus slowdown

Image
Elliot Smith 2-3 minutes - Source: CNBC Pedestrians walk past the Bank of England in the City of London, Britain June 28, 2016. Paul Hackett | Getty Images The Bank of England on Thursday added another £100 billion to its quantitative easing program in a bid to shore up the U.K. economy amid the fallout from the coronavirus crisis. The additional bond purchases will take the total value of the central bank’s Asset Purchase Facility (APF) to £745 billion. The Bank resisted taking interest rates into negative territory, a decision being closely watched by investors, instead opting to hold its main lending rate steady at 0.1%. Rates have been reduced twice from 0.75% since the beginning of the coronavirus pandemic. Sterling edged around 0.1% lower against the dollar shortly after the decision was announced, which was in line with analyst expectations. The BOE’s latest monetary policy decision comes as the U.K. economy atte

UK News | Central Banks: Bank of England warns of deep UK recession

Image
By Szu Ping Chan Business  5-6 minutes Source: BBC Image copyright Getty Images Image caption A man walks past the Bank of England in London The Bank of England has warned that the coronavirus pandemic will push the UK economy towards its deepest recession on record. It said the economy was on course to shrink 14% this year, based on the lockdown being relaxed in June. Scenarios drawn up by the Bank to illustrate the economic impact said Covid-19 was "dramatically reducing jobs and incomes in the UK". Policymakers voted unanimously to keep interest rates at a record low of 0.1%. However, the Monetary Policy Committee (MPC) that

Central Banks: Bank of England keeps rates steady, promises more asset purchases if needed

1minuto - Source: CNBC The Bank of England kept its key interest rate at a record-low level of 0.1% on Thursday and said it was ready to expand its asset purchases further if needed to support the economy or guard against an unwarranted tightening of financial conditions. The BoE said it was maintaining the total size of its bond-buying programme - comprising mostly British government debt and some corporate bonds - at 645 billion pounds ($774 billion). The central bank made two emergency cuts to its key interest rate earlier this month and boosted its bond-buying programme in a bid to offset some of the hit to the economy from the spread of the coronavirus and the government’s response to it.

Bank of England opts against a rate cut but warns of slow growth after Brexit

Image
Elliot Smith 4minutes - Source: CNBC Mark Carney, the outgoing Governor of the Bank of England. Matt Dunham | WPA Pool | Getty Images The Bank of England (BOE) on Thursday held interest rates following Governor Mark Carney’s final monetary policy meeting. Sterling jumped 0.5% against the dollar to trade at around $1.3084 after the central bank’s Monetary Policy Committee (MPC) voted 7-2 to keep the base rate at 0.75%. Weak GDP (gross domestic product) figures had led several members to mull a rate cut, but with January data showing an uptick in confidence and activity following the December 12 general election, expectations of an imminent cut had dampened. The decision comes at a crucial time for the British economy, with the U.K. set to leave the European Union at 11 p.m. London time on Friday. British and European leaders will now enter pivotal negotiations in a bid to secure a free trade agreement before the end of 202

Central Banks | Bank of England: Sterling falls after Bank of England split on interest rate cut

Image
Sam Meredith 3minutos - Source: CNBC Bank of England Justin Tallis | AFP | Getty Images The Bank of England (BOE) held interest rates steady on Thursday, opting not to adjust borrowing costs in the world’s fifth-largest economy ahead of a snap election. With 35 days to go before Britons head to the ballot box, the BOE’s nine-member Monetary Policy Committee (MPC), led by Mark Carney, voted to hold interest rates at 0.75%. Seven policymakers, including Carney, voted in favor of leaving interest rates unchanged, but Jonathan Haskel and Michael Saunders surprised financial markets by voting for a quarter-point rate cut. Sterling traded at $1.2811 shortly after the announcement, falling over 0.3%. Saunders and Haskel said their vote for an interest rate cut was driven by reduced job vacancies and downside risks from the global economy and Brexit. Other members of the MPC suggested a willingness to cut rates over the co

Central Banks: European Central Bank cuts its deposit rate, launches new bond-buying program

Image
Elliot Smith 1 minute - Source: CNBC Mario Draghi, President of the European central Bank (ECB) attends a news conference on the outcome of the Governing Council meeting at the ECB headquarters in Frankfurt, Germany, March 7, 2019. Kai Pfaffenbach | Reuters Markets had widely expected some form of stimulus package, though hawks within the European Central Bank (ECB) Governing Council had moved in recent weeks to downplay the scale of the impending measures. A slowing euro zone economy, persistent low inflation and the U.S.-China trade war had all pointed toward the central bank being forced to inject stimulus. Recent economic data has not been promising, though the latest Purchasing Managers’ Indexes (PMIs) had indicated some stability despite enduring industrial weakness.