March 20, 2023
United States:
US Credit Crunch Raises Risk of Fed Slamming Brakes Too Hard
A banking crisis in a matter of days has emerged to potentially choke off a red-hot economy, raising the odds of a recession that the Federal Reserve has been working to avoid.
Rattled by runs on regional US banks and wild gyrations in stocks and bonds, bankers abandoned attempts to raise new funding for their corporate clients. Not a single investment-grade company sold bonds in the US market last week, marking the first sign of what’s set to be a broad-based hit to the provision of credit across the economy.
Europe:
Russia’s Oil Flows Hold Up Despite Pledged Production Cut
Russia’s seaborne crude flows slipped back last week, though there is still little sign that the country has cut production as it said it would this month.
In the seven days to March 17, Russia’s shipments were trimmed by 90,000 barrels a day to 3.23 million barrels a day. The less-volatile four-week average dipped by a similar amount.
Asia:
China’s Surprise RRR Cut Puts Focus on Bank Lending Rates
Chinese banks kept their benchmark lending rates unchanged on Monday despite the central bank’s surprise easing action last week, with economists betting there could be scope for lower rates in coming months.
Lenders held the one-year loan prime rate at 3.65% and left the five-year rate, a reference for mortgages, flat at 4.3%, according to a statement released by the People’s Bank of China in line. Almost all economists surveyed by Bloomberg had forecast the rates to be maintained.
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