ISLAMABAD, Jan 24- Pakistan's central bank cut its key discount rate to 8.5 percent from 9.5 percent on Saturday, in line with analyst expectations and citing lower inflationary pressure due to falling global oil prices. The International Monetary Fund saved Pakistan from possible default in 2013 by agreeing to lend it $6.8 billion over three years.» Read More
Wall Street prepares for lift off on the opening amid calmer credit markets, higher world stock markets and some merger news. European stock markets are comfortably higher, and Asia closed higher though Japan stocks were flat on the rising yen.
The Bank of England lent Barclays 314 million pounds ($622 million) at its standing facility, which can be used to square accounts between banks, the Wall Street Journal reported on its online edition on Wednesday, citing sources familiar with the situation.
China is likely to keep tightening monetary policy over the rest of 2007, but some economists believe the central bank will slow the tempo of interest rate increases as the outlook for exports darkens and inflation prospects improve.
Something important happened in the stock market today--nothing. For the first time in almost a month, stocks were not buffeted by anxieties about credit issues, or by volatility in the bond market, or by extremes in volatility, or even by attempts to sell off financial stocks on any rally.
Recent market turmoil only warrants a change in interest rates by the U.S. central bank if it hits the outlook for inflation or growth, Federal Reserve Bank of Richmond President Jeffrey Lacker said on Tuesday, noting that price pressures remain a worry.
Senate Finance Committee Chairman Christopher Dodd told CNBC he asked the Bush administration to lift the portfolio caps on housing finance giants Fannie Mae and Freddie Mac, but Treasury Secretary Henry Paulson expressed reluctance to do so.
The European Central Bank on Tuesday allotted 275 billion euros ($370.3 billion) in 7-day refinancing operations, at an average interest rate of 4.09%.
Stock traders will be looking over their shoulders at the credit markets as a furious flight to quality into Treasuries keeps the pressure on stocks prices. For now, stock futures are higher and look set for a firmer opening.
The People's Bank of China said on Tuesday it would raise its deposit rates by 27 basis points as of Wednesday "to stabilise inflation expectations."
A global credit crunch pushed German investor morale to its lowest level in eight months in August, raising pressure on the European Central Bank (ECB) to keep interest rates on hold for the time being.
Persimmon posted a 9.8% rise in first-half pretax profit on Tuesday and as the U.K. housebuilder said it expected the U.K. housing market to continue to grow despite recent rises in interest rates.
Senate Banking Chairman Christopher Dodd told CNBC he believes the Federal Reserve was lax in its responsibilities by not preventing the surge of subprime mortgage loans. Dodd also said he will meet with Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson on Tuesday morning.
Beneath a fairly quiet August day with unexceptional volume, the markets continued to reveal an underlying nervousness.
I'm out of the office for a few days this week (have to take the time off--or lose it) but I will be posting some of your email replies to my recent posts. Here goes then. From Daniel D. in Illinois: Everyone seems to concentrate on the defaults and foreclosures. The real threat I see are the loans that reset that don't result in defaults. The new terms will be higher than the old terms, maybe not enough to cause a default, but the increase will come right out of disposable income.
Investors may soon get what they are clamoring for: a cut in the benchmark federal funds rate. But they should be careful for what they wish for. Economists say that if the Fed cuts the overnight bank lending rate before a scheduled Sept. 18 meeting, it would result from the near-panic market conditions seen last week.
Thornburg Mortgage's president Larry Goldstone told CNBC Monday that there is still a crisis of investor confidence in the mortgage market but that the residential mortgage lender expects to be profitable.
Fed Chief Bernanke embraced the moral hazard and decided to act. The Fed blinked, cut the discount rate, and markets in Europe exploded out of the gates this Monday morning.
Investors will be watching every move by the Federal Reserve for buy and sell cues after learning last week that more aggressive monetary policy moves can spark explosive reactions in the financial markets. Analysts say they see credit turmoil only temporarily arrested by the Federal Reserve's surprise cut in the discount rate.
Wall Street is set for a higher open after world stock markets rebounded in a Fed-inspired relief rally. Tokyo stocks were up 3%, the biggest gain in more than a year, in its first trading day since the Fed move. European stock markets, up sharply Friday, continue to rise this morning.
Given the dramatic volatility of recent weeks, CNBC has put together a survival guide for investors. Here's a sampling of what our experts had to say during the week.