Australia Raises Rates The Reserve Bank of Australia surprised financial markets when it tightened policy for the first time in six months in a pre-emptive strike to stave off looming inflation pressures.
RBI Raises Interest Rates India’s central bank raised interest rates for a sixth time this year, as expected, but said it sees little need for more hikes near term as its tighter monetary policy acts to bring down inflation that has plagued Asia’s third biggest economy.
Spain’s BBVA to Buy Stake in Garanti Spain’s Banco Bilbao Vizcaya Argentaria said it has agreed to buy a 24.9% stake in Turkey’s Garanti Bankasi for $5.84 billion.
Debt costs jump for Dublin and Lisbon Investors take fright at European proposals. Ireland saw the premium it pays over German benchmark interest rates rise to 4.67 percentage points, while the yield on its 10-year bonds reached 7.14 per cent, up 0.22 percentage points. Both the premium and the yield set new records since the introduction of the euro.
Meanwhile, Portugal’s yield rose 0.16 percentage points to 6.11 per cent, while Greece and Spain saw smaller rises and European banking shares fell sharply in a broadly flat market.
Opinions Are Split on Fed Policy Move The Fed’s move to print money to begin a new round of bond-buying is aimed at lowering long-term interest rates to give the economy a lift. But inside and outside the Fed, there is an unusual divergence of opinions on how much good it will do.
Kohn Says QE2 Won’t ‘by Huge Amount’ Turn Economy Around Former Federal Reserve Vice Chairman Donald Kohn says a new round of bond-buying will have "some benefit" but won’t "instantly and by a huge amount turn the economy around."
Export data add to pressure on Korea Soaring South Korean exports are expected to increase pressure on Japan to cool the strength of the yen against the won, rekindling tensions over currency interventions between the Asian trading rivals. Seoul said on Monday that overseas shipments, the backbone of Asia’s fourth biggest economy, had surpassed forecasts to leap 30 per cent in October compared with a year earlier. The picture contrasts sharply with that in Japan, where in mid-October the government downgraded its assessment of economic conditions for the first time in almost two years due to the strong yen and weak exports.