Bloomberg The risk of stagflation isn’t causing companies to pull back on investment yet, according to the finance chiefs of some of Canada’s largest banks. “They are ramping up inventories and investing in their businesses. And that’s what’s driving the increased borrowing, whether that’s increasing utilization of lines, which we are seeing, or new borrowing with existing and new clients,†...
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RBI sets aside more money for rainy day, payout drops
Bloomberg The Reserve Bank of India’s (RBI) expenditure surged as it tucked away more money towards a contingency fund, its annual report showed, a development economists said cut the central bank’s surplus and led to the smallest dividend payout in a decade to the government. While income rises by 20.1% in the financial year to March 2022, expenditure zoomed ...
Read More »Japanese yen bounces from two-decade low
Bloomberg The yen’s recovery from a 20-year low is picking up pace, with options markets and analysts suggesting the rebound has some room to run. After rising over 3% from its trough, Japan’s currency may climb back to 125 as global growth worries fuel demand for havens and US yields ease, according to Shinkin Asset Management and IG Markets ...
Read More »RBNZ steps up inflation fight with second half-point hike
Bloomberg New Zealand’s central bank (RBNZ) raised interest rates by half a percentage point for a second straight meeting and forecast further aggressive hikes to come to tame inflation. The Reserve Bank’s Monetary Policy Committee lifted the official cash rate (OCR) to 2% from 1.5% on Wednesday in Wellington, as expected by 19 of 22 economists in a Bloomberg survey. It ...
Read More »Yuan gains fading with drop to 7 per dollar on horizon
Bloomberg The yuan’s biggest weekly gain in two years could be fleeting, with some analysts forecasting its slide to the 7 per dollar level. Option traders are reviving bearish wagers on the Chinese currency as indicated by the three-month dollar-offshore yuan risk reversal, which advanced this week for the first time since mid-May. The cost of shorting the yuan also ...
Read More »JPMorgan’s new UK digital bank has $10b in deposits
Bloomberg JPMorgan Chase & Co’s new UK digital lender has attracted more than 500,000 customers and gathered about $10 billion in deposits since launching in September. Chase UK, its British digital-only bank, is “off to a strong start,†JPMorgan said in an investor presentation. But such growth hasn’t come cheap with losses at US lender’s overseas digital banks likely ...
Read More »New Bank of Korea chief takes more vocal stance on economy
Bloomberg New Bank of Korea Governor Rhee Chang-yong is turning out to be more outspoken than his predecessor as he shows a willingness to leverage his position to stimulate debate on economic challenges ranging from inflation to demographics. Rhee made clear ahead of his first policy meeting this week that he will press for higher interest rates to rein ...
Read More »Thailand signals it’s in no hurry to raise rates
Bloomberg Thailand’s central bank is confident inflation will return to target next year, signalling there was no rush to change monetary policy settings just yet to check price gains hovering around a 13-year high. “Inflation is no doubt trending higher,†Governor Sethaput Suthiwartnarueput said in an interview with Bloomberg Television’s Haslinda Amin at the World Economic Forum’s annual meeting ...
Read More »Climate change comments don’t reflect bank’s views: HSBC chief
Bloomberg HSBC Holdings Plc Chief Executive Officer Noel Quinn said an executive’s remarks playing down the risk of climate change are “inconsistent†with the bank’s strategy and don’t reflect views of senior management. “Our ambition is to be the leading bank supporting the global economy in the transition to net zero,†he said in a post on LinkedIn. “I ...
Read More »Indonesia’s central bank lifts reserve requirement ratio
Bloomberg Indonesia’s central bank tightened reserve requirements for lenders, while keeping its benchmark interest rate unchanged, as it seeks to withdraw excess liquidity without hurting economy’s recovery from the pandemic. Bank Indonesia plans to raise the reserve requirement ratio for banks to 9% in September from previously announced 6.5%, Governor Perry Warjiyo said in a briefing on Tuesday. It ...
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