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Latest Central bank Stories

2009-04-02 13:57:58

The European Central Bank said Thursday it would lower its key lending rate a quarter of a percentage point to 1.25 percent, effective April 8. The reduction takes into account the expectation that price pressures will remain subdued, bank President Jean-Claude Trichet said in a statement in Frankfurt, Germany. The world economy, including the euro area, is undergoing a severe downturn, he said, noting, both global and euro area demand are likely to remain very weak over 2009, before...

2009-03-23 18:55:25

China Monday called for the U.S. dollar to be replaced as the international reserve currency. Instead, the Chinese government said it wants a global reserve system controlled by the International Monetary Fund, The Financial Times reported. The goal is to create a global reserve currency that is divorced from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies, Zhou Xiaochuan, governor of the...

2009-03-17 18:44:55

The Bank of Japan said Tuesday it was considering accepting $10 billion of subordinated loans and bonds from commercial banks to spur lending. Bank Gov. Masaaki Shirakawa called the maneuver an extremely extraordinary measure, Kyodo News reported Tuesday. Banks count subordinated debt as supplementary capital. By shifting these lower priority debts to capital, the central bank expects lending to increase, Kyodo said. Shirakawa made the announcement as bank policy makers headed into a two-day...

2009-03-05 19:36:27

Eurozone interest rates were cut Thursday to an all-time low in response to the worst recession in continental Europe since World War II, officials said. The European Central Bank cut its main interest rate from 2 percent to 1.5 percent. The rate has been slashed by 275 basis points since early October, to its lowest level since the euro was introduced in 1999, The Financial Times reported. Rates are still higher in the eurozone than in the United States and Britain, an indication the ECB is...

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2009-03-05 13:30:00

The European Central Bank said Thursday it would lower its key lending rate 50 basis points to 1.5 percent. The drop matches the Bank of England's policy shift announced Thursday. BOE officials dropped their lending rates 50 basis points to 0.5 percent. In a statement, ECB President Jean-Claude Trichet said inflation rates in the euro area were expected to fall to less than 2 percent through 2010. Indeed, recent economic data "¦ add further evidence to our assessment that both global...

2009-03-03 09:09:58

Lending rates fell in Canada Tuesday after the Bank of Canada cut its central lending rate to 0.5 percent from 1 percent, the lowest ever. The country's major banks all issued releases saying they were lowering their prime rates to 2.5 percent, effective Wednesday. In a statement issued in Ottawa, the central bank said the global economy had deteriorated further since January among major countries. The nature of the U.S. recession, with very weak auto and housing sectors, is particularly...

2009-02-02 08:16:07

Italian Finance Minister Giulio Tremonti in Davos, Switzerland, said he was in favor of establishing a European Union bond. With Italy's debt-to-gross domestic product ratio over 100 percent, lenders are demanding higher returns on Italian bonds, the European Observer reported Monday. Speaking at the World Economic Forum last week, Tremonti said, I am speaking of a political issue not an economic issue "¦ now we need a union bond. The concept is not universally appealing to European...

2009-01-15 13:58:57

The European Central Bank Thursday trimmed its key lending rate to 2 percent as slumping European economies have surpassed inflation as its leading concern. A month ago, the bank made its steepest rate cut ever, The Washington Post reported. At the time, bank President Jean-Claude Trichet suggested that further rate cuts were unlikely, the Post said. The bank keeps a sharp eye on inflation, which can be triggered by rate cuts that encourage spending. But, as economies have stumbled, prices...

2009-01-08 08:06:05

The economic slowdown is pushing the Chinese central bank to keep more of its money close to home, reducing its appetite for U.S. bonds, an economist said. All the key drivers of China's Treasury purchases are disappearing -- there's a waning appetite for dollars and a waning appetite for Treasuries, Ben Simpfendorfer, a Royal Bank of Scotland economist, told The New York Times. China, surpassing Japan as the No. 1 owner of Treasuries, holds $1 trillion in U.S. debt, the Times said Thursday....

2009-01-08 01:07:33

Japan's financial institutions are being offered $13 billion in emergency loans from the Bank of Japan, the central bank said Thursday. Kyodo news service reported that commercial banks and other financial institutions that bid for the low-interest loans will be able to borrow the money between Jan. 14 and April 3. The lending rate of 0.1 percent per year equals the Bank of Japan's key policy rate that guides overnight borrowing costs between banks and is lower than the 0.2 percent or so the...


Word of the Day
barratry
  • The offense of persistently instigating lawsuits, typically groundless ones.
  • An unlawful breach of duty on the part of a ship's master or crew resulting in injury to the ship's owner.
  • Sale or purchase of positions in church or state.
This word ultimately comes from the Old French word 'barater,' to cheat.
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