Latest Videos
The information you requested is not available at this time, please check back again soon.
Higher-than-expected interest rates amid persistent inflation are perceived as the biggest threat to financial stability among market participants and observers, according to the Federal Reserve.
Fifth Third Bancorp jumped the most in four months, leading bank stocks higher, with Chief Executive Officer Tim Spence predicting that income from lending has bottomed out.
China’s securities regulator said it will encourage the nation’s companies to list in Hong Kong as it unveiled a package of measures to bolster the city’s position as an international financial hub.
Hong Kong’s accounting regulator said it will investigate allegations over PricewaterhouseCoopers LLP’s role auditing China Evergrande Group following a “whistleblower report”.
Hudson Bay Capital Management has raised over $800 million to invest in so-called special opportunities, according to a person with knowledge of the matter.
Oct 15, 2021
, Bloomberg News
(Bloomberg) -- China’s inflation risks are “controllable” and while rising costs may hurt small businesses, authorities have increased support for those types of firms, central bank officials said.
Sun Guofeng, head of the monetary policy department, said at the briefing in Beijing on Friday that producer price inflation will remain elevated in the short term before falling toward the end of the year, though imported inflation and the impact of the global commodity boom is controllable.
People’s Bank of China officials reiterated an earlier policy stance that monetary policy will be flexible, targeted, reasonable and appropriate. The central bank has maintained a largely neutral monetary policy this year, guiding credit growth to slow down while keeping liquidity stable. Governor Yi Gang recently vowed to keep a “normal” monetary policy for as long as possible and avoid large-scale stimulus.
While consumer inflation is expected to pick up, it will remain within reasonable range, Sun said. Small businesses in downstream industries may be affected by the increase in costs, and the PBOC has increased support to those firms, he said.
Other highlights from the PBOC briefing:
Many economists expect the central bank to cut banks’ reserve requirement ratio by the end of the year to boost liquidity and replace maturing policy loans. Interest rates are expected to stay unchanged though.
The PBOC officials said authorities have asked banks to keep loans to the real estate industry stable and orderly to limit contagion from the debt crisis of developer China Evergrande Group. Evergrande’s risks are controllable and unlikely to spread, they said.
Read More: China Breaks Silence on Evergrande, Saying Risks ‘Controllable’
©2021 Bloomberg L.P.
