Bloomberg Mexico increased borrowing costs for the second time this year as higher US interest rates, global trade tensions and the July 1 presidential election have battered the country’s peso, posing a risk to inflation. The currency strengthened on the decision. Policy makers, led by bank Governor Alejandro Diaz de Leon raised the key interest rate a quarter-point to 7.75 ...
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India plans sale of IDBI Bank stake to top insurer
Bloomberg India’s government is likely to sell a part of its stake in IDBI Bank Ltd. as early as next month and potential buyers include the country’s top insurer, said people familiar with the matter. Potential investors would include Life Insurance Corporation, the people said, asking not to be identified as the information isn’t public. The sale would lower the ...
Read More »Banks in EU win battle to soften new crisis rules
Bloomberg Banks in the European Union won a battle to soften new rules on how failing firms are restructured, as the bloc’s parliament staked out its position on a sweeping overhaul of rules for the financial industry. Lawmakers backed a cap on the loss-absorbing liabilities that regulator can force troubled banks to hold. The ceiling could help to hold down ...
Read More »Norway firming up plans for first interest rate hike in 7 years
Bloomberg Norway’s central bank is seen firming up plans to lift interest rates “after summer†as the richest Scandinavians leave their oil shock behind them. As Norway moves from a recovery to an outright expansion, policy makers in Oslo are becoming less focussed on the krone and are preparing to tighten ahead of colleagues in Frankfurt and Stockholm. “Norges Bank ...
Read More »PBOC to use tools ‘comprehensively’ as trade war with US sparks sell-off
Bloomberg China’s central bank called for investors to remain calm and pledged to use monetary policy “comprehensively,†after an escalation of the stand-off with US sent the nation’s benchmark stock index plunging. The People’s Bank of China Governor, Yi Gang, said in an interview with the Shanghai Securities News published on the central bank’s website that policy makers are prepared ...
Read More »Bank of England could target UK productivity goal
Bloomberg The Bank of England’s remit should be overhauled to include a 3 percent target for productivity growth, according to a report commissioned by the UK’s opposition Labour Party. The central bank should also have its toolkit expanded to include credit guidance and greater use of macro-prudential policy, said the study, led by GFC Economics’ Graham Turner. The proposals, for ...
Read More »Morocco central bank holds rates, citing inflation prospects
Bloomberg Morocco’s central bank kept its benchmark interest rate unchanged despite rising inflation that’s prompted a damaging product boycott. The central bank kept the key rate at 2.25 percent, citing medium-term inflation and growth prospects. Last month the general affairs minister said the economy could withstand annual price growth of as much as 3 percent, above the 2.7 percent reached ...
Read More »StanChart sees bigger revenues from Africa
Bloomberg Standard Chartered Plc expects Africa to account for a bigger slice of revenue if the region is able to put in place policies that will further spur economic growth, Chairman Jose Vinals said. “If they do the right thing, they’ll grow faster than other countries which are more advanced,†he said in an interview in Lagos, Nigeria’s commercial capital. ...
Read More »Taiwan poised to keep benchmark interest rate unchanged
Bloomberg Taiwan’s central bank will keep its benchmark interest rate unchanged on Thursday as a brewing trade war adds to risks facing the export-oriented economy, according to a Bloomberg survey. A majority of 33 economists said Taiwan will hold the discount rate for banks at an eight-year low of 1.375 percent, while only three predicted an increase of 12.5 basis ...
Read More »US banks set to boost payouts by $30bn
Bloomberg Harsher Federal Reserve stress tests this year won’t stop US banks from increasing their payouts to shareholders. As the annual review gets underway this week, the 25 largest lenders are gearing up to announce dividends and buybacks totaling roughly $30 billion more than last year, representing a 25 percent increase, according to analysts’ estimates compiled by Bloomberg. JPMorgan Chase ...
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