07292016Fri
Last update: Fri, 29 Jul 2016 09am

Business & Finance - Banking & Finance

Nigeria hikes rates to lift naira, fight inflation ABUJA: The Central Bank of Nigeria (CBN) on Tuesday raised its benchmark interest rate to 14 percent from 12 percent in move to stabilise the country's currency, the naira, and tame soaring inflation. CBN governor Godwin Emefiele told reporters the monetary policy committee which meets every two months "voted to increase the MPR (interest rate) by 200 basic points from 12 percent to 14 percent." MPR is the benchmark rate at which the CBN lends to commercial banks and it has been a key instrument in stabilising prices. Financial analysts welcomed the decision. "Given the cost-push nature of inflation in Nigeria, which largely stems from the shortage of foreign exchange, we believe that this was the right thing to have done," said Razia Khan of Standard Chartered Bank. "Today's monetary policy decision demonstrates a commitment to foreign exchange liberalisation, which alone will undo some of the bottlenecks that have contributed ...


Business & Finance - Banking & Finance

Goldman sued over 1MDB links in Malaysian bank merger NEW YORK: In a new development linked to the 1MDB corruption scandal, a former Hong Kong-based investment fund is suing Goldman Sachs for conflict of interest in advising a 2011 Malaysian bank merger.Primus Pacific Partners said Tuesday that Goldman and its then managing director in Southeast Asia, Tim Leissner, concealed its close relationship with Malaysian Prime Minister Najib Razak when the bank was recruited to advise EON Capital, partly owned by Primus, in its $1.7 ...

Business & Finance - Managed Funds

US bond yields rise before auction as Fed meets NEW YORK: Yields on US government bonds edged higher on Tuesday ahead of a $34 billion auction of five-year notes, while the Federal Reserve began a two-day meeting that may produce clues on the timing on a possible interest rate increase.The U.S. central bank is widely expected to leave its target on policy rates at 0.25 percent to 0.50 percent this week due to global risks, but traders seemed wary of signals the Fed would ...

Business & Finance - Banking & Finance

India central bank governor defends inflation record, urges independence MUMBAI: The Reserve Bank of India's outgoing governor, Raghuram Rajan, on Tuesday staunchly defended his record in curbing inflation and cleaning up bad debt at banks, and he called on the government to protect the central bank's independence.The comments mark Rajan's latest response to his critics after the former International Monetary Fund chief economist said last month he would step down when his three-year term ends in early September.Rajan had faced withering criticism from right-wing ...

Business & Finance - Banking & Finance

Brazil central bank sees no rate cut, worried with high inflation BRASILIA: Brazil's central bank sees no room to cut interest rates as inflation remains persistently high and expectations have failed to drop despite a recession, according to the minutes of the bank's last rate-setting meeting released on Tuesday.The central bank's monetary policy committee, known as Copom, left its benchmark Selic rate steady at 14.25 percent for the eighth straight time last week as expected, but changed its decision statement completely to detail the risks to ...

Business & Finance - Banking & Finance

Turkey's central bank slams S&P over ‘hasty’ ratings downgrade ANKARA: Turkey's central bank governor pledged on Tuesday to do whatever is needed to ensure financial stability after a failed coup and criticised Standard & Poor's "hasty" move to cut the country's credit rating further into junk territory.At a news conference to present the central bank's quarterly inflation report, Murat Cetinkaya said it was too early to assess the impact of the abortive putsch on the Turkish economy. But he took pains to emphasise that ...

Business & Finance - Banking & Finance

Bank of England to cut key rate Aug 4, hold off on QE for now: Reuters poll LONDON: The Bank of England is almost certain to cut benchmark borrowing costs when it sets policy on Aug. 4, but a slim majority of economists in a Reuters poll said it would hold off for now on restarting its asset purchase programme.Britons voted in a June 23 referendum to leave the European Union, a shock outcome that roiled financial markets and led many economists and traders to think the Bank would cut rates at ...