October 10, 2022
United States:
IMF, World Bank Warns of Increasing Risk of Global Recession
The International Monetary Fund and World Bank warned of the rising risk of a global recession as faster inflation forces central banks to raise interest rates, crimping growth.
Higher borrowing costs are “really starting to bite,” IMF Managing Director Kristalina Georgieva said alongside World Bank President David Malpass at a virtual event on Monday kicking off the annual meetings of their institutions.
Europe:
ECB’s Knot Urges ‘Significant’ Steps at Next Two Meetings
The European Central Bank should take “significant steps” at its next two interest-rate meetings, according to Governing Council member Klaas Knot, who’s part of a hawkish group that’s raising expectations of a second straight three-quarter-point hike in October.
Asia:
China Turns to Controversial Loan Tool for Policy Bank Funding
China used a controversial tool to inject funds into policy banks for the first time in more than two years, as Beijing increasingly relies on the semi-official lenders to support the economy while monetary easing is constrained by rising global interest rates.
The People’s Bank of China added a net 108.2 billion yuan ($15.2 billion) in Pledged Supplemental Lending last month for China Development Bank, Agricultural Development Bank of China, and Export-Import Bank of China, according to a statement posted by the central bank over the weekend. That marked the first monthly increase in the tool since February 2020 and took the outstanding value of PSL to 2.65 trillion yuan.
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