Central Banks

What happens when oil hits US$100 a barrel?

Surging crude prices are posing another headwind for the world economy after United Sates (US) President Donald Trump’s “zero” pledge on Iran oil sales.Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative.Much will depend on how sustained the spike proves to be.

29 April 2019

China tells banks to limit any risk from entrusted loan business

China took another step to clamp down on leverage in the financial system, ordering banks to ensure they aren’t exposed to risks from their entrusted loan business.Banks can only act as intermediaries when arranging entrusted loans, and must not provide guarantees or get involved in decision-making, according to new rules posted in a statement on the China Banking Regulatory Commission’s website over the weekend.The entrusted loan business, which normally involves companies providing finance

8 January 2018

China to raise money market rates this year

China’s central bank will make modest increases in money-market rates in 2018 as it aims to keep up the pressure on deleveraging and prevent too much divergence with U.S. policy, according to a Bloomberg survey.The People’s Bank of China is seen raising interest rates on reverse-repurchase agreements by five basis points three times this year, starting in the first quarter, the survey shows.

3 January 2018

Singapore needs to be prepared for inflation pickup

Singapore’s central bank chief said while inflation is still well below the historical average, policy makers need to be proactive if a stronger economy results in a pickup in price pressures.Inflation will climb at some point if economic growth continues to strengthen, and under those circumstances, the central bank – like others around the world – needs to be forward-looking, Ravi Menon, managing director of the Monetary Authority of Singapore, said in an interview at the bank’s headquarter

25 October 2017

Vietnam's central bank confident of keeping currency stable

Vietnam’s central bank said record-high foreign reserves will enable it to keep the currency stable for the rest of the year as the government focuses on boosting growth in the Southeast Asian economy.With reserve levels at 45 billion dollars, “we are confident that we will be able to maintain the dong’s value,” in 2017, Nguyen Thi Hong, deputy governor of State Bank of Vietnam, said on the sidelines of a meeting in Hoi An on Saturday.

23 October 2017