Sticky U.S. Inflation data has reduced the chances of an early federal reserve rate cut. The data has, in turn, raised an important question: has the inflation genie still not completely been put back into its bottle? Hotter-than-anticipated U.S. Consumer Price Index (CPI) data on Thursday tempered bets on a FED rate cut in March.

Higher-than-expected inflation makes rate cuts less urgent

Is inflation easing in india? Yes, it is. This is based on data which shows the fall in cost to cook an Indian meal last month compared to November. In December, the cost of preparing meals at home saw a decline in India, thanks to a drop in vegetable prices. According to Crisil market intelligence & analytics, the expense of a vegetarian meal plate, known as a thali, decreased by 3 percent month-on-month.

How much does cooking at home cost in India?

Gold as an investment option may continue to dominate in 2024, attracting both central banks and individual investors. Central banks particularly made record purchases of gold in 2022 and 2023. Overall, there was a 100% increase in gold accumulation by the world’s central banks in 2022 and the trend continued in 2023.

Gold shines bright as global debt continues to soar

A former senior official at the People’s Bank of China has been sentenced to more than 16 years in prison for taking bribes and leaking state secrets, Caixin reported.

Former China central bank official jailed for 16 years for graft

Nigeria's former Central Bank Governor is under scrutiny over siphoning millions of dollars. A report accuses Godwin Emefiele of stashing $690 million in UK accounts and stealing some $6 million from the Nigerian Central Bank.

Nigeria: Former bank chief Godwin Emefiele accused of stealing $690 million

Nigeria's former bank chief Godwin Emefiele accused of stealing $690 million

For a very long time, the US dollar has dominated international markets. It still does so, although, during the past 20 years, the US economy has produced a decreasing percentage of the world's production. The latest International Monetary Fund's (IMF) data shows a decline in the dollar's share in global central banks' foreign currency reserves. The data shows the dollar's share is down in the September quarter to the lowest since the final three months of last year.

Dollar reserves fall to lowest in a year

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time.&nbsp;

The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data.

"The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said.&nbsp;

'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation.&nbsp;&nbsp;

The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes.&nbsp;

The central bank retained its projection for retail (CPI) inflation – which includes food &amp; essential commodities – at 5.4 per cent for the current fiscal year, 2023-24.&nbsp;

However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall.&nbsp;

"Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation.&nbsp;

The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then.&nbsp;

Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent.&nbsp;

India is doing well, but headwinds remain

Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation.&nbsp;

"The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added.&nbsp;

The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent.&nbsp;

Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high.&nbsp;

Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy.&nbsp;

"Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said.

Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern.&nbsp;

What is the repo rate?

The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy.&nbsp;

A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise.&nbsp;

In India, the repo rate is a tool the central bank uses to curb economic inflation.

Industry&nbsp;speaks&nbsp;

Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth.&nbsp;

The policy stability, he argued, may bolster buyer sentiments in the real estate sector.&nbsp;

"Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said.

Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors.

"While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said.&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.

India's Monetary Policy Committee (MPC) unanimously decided to keep interest rates unchanged for the fifth consecutive time. The Reserve Bank of India left the repo rate at 6.5 per cent while taking into account easing inflationary pressures and robust economic growth data. "The rate action so far is still working its way into the economy. Hence, the Monetary Policy Committee decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target while supporting growth," RBI Governor Shaktikanta Das said. 'Withdrawal of accommodation' is a term used by the central bank to denote a tighter monetary policy which reduces liquidity to control inflation. The RBI hiked the repo rate from 4 per cent to 6.5 per cent between May 2022 and February 2023 before pausing the hikes. The central bank retained its projection for retail (CPI) inflation – which includes food & essential commodities – at 5.4 per cent for the current fiscal year, 2023-24. However, inflation is expected to fall below five per cent by 2024, provided India receives normal rainfall. "Policymakers have to be mindful of the risk of being carried away by a few months of good data or by the fact that CPI inflation has come within the target range," Das said, indicating that the RBI will continue to maintain a hawkish stance on inflation. The Ukraine war disrupted the already distorted pandemic-led global supply chain, which led to high consumer inflation in India. However, things have eased out since then. Retail inflation remained under the RBI's target range of 4-6% in October -- 4.87%. However, the central bank added that India is still far from bringing inflation under four per cent. India is doing well, but headwinds remain Das said the Indian economy presents a picture of 'resilience and momentum', pointing to the July-September quarter growth rate of 7.6 per cent that defied expectation. "The fundamentals of the Indian economy remain strong... Consumer and business optimism create congenial conditions for sustained growth of the Indian economy," Das added. The central bank also revised the real GDP growth rate for 2023-24 from 6.5 per cent to 7.0 per cent. Improving rural demand, strengthening manufacturing activity, buoyancy in services, and government infrastructure spending could help India end the current financial year on a high. Even with the bright economic forecast, challenges will persist in 2024 due to the fragile global economy. "Elevated debt levels, geopolitical hostilities and extreme weather conditions remain risks to the inflation outlook," RBI Governor Shaktikanta Das said. Uncertain food prices are likely to impact inflation in the near term, with elevated sugar prices likely to be a cause for concern. What is the repo rate? The repo rate or repurchase rate is when the central bank lends money to commercial banks in India. A change in the repo rate affects the money flow in the economy. A cut in repo rate leads to increased money circulation -- colloquially called easy money policy. On the other hand, if the repo rate rises, money circulation is curtailed, and borrowing costs rise. In India, the repo rate is a tool the central bank uses to curb economic inflation. Industry speaks Adhil Shetty, CEO of Bankbazaar, welcomed the pause in the repo rate, pointing out that a stable lending rate can encourage investments and foster economic growth. The policy stability, he argued, may bolster buyer sentiments in the real estate sector. "Existing borrowers can rest assured that their EMIs won't be immediately affected. Prospective homebuyers may find relief in the stable repo rate, allowing them to plan their moves without the imminent threat of rate hikes," he said. Terming the rate pause 'hawkish', Bhuvan Rustagi, Co-Founder, Lendbox, added that the announcement is good news for Indian retail investors. "While interest rates remain unchanged in the short term, a stable economic environment and controlled inflation can provide a positive long-term outlook for investment. Savings and Deposit rates are likely to remain stable which translates into a positive investment option for investors looking for stable returns," he said. WATCH WION LIVE HERE

India's central bank keeps the pause on key rates

India's central bank left its key repo rate unchanged at 6.5 per cent on Friday but warned elevated food inflation is still a concern.

After six consecutive rate hikes between April 2022 and February this year, the Reserve Bank of India has kept monetary policy on hold.

The likelihood the central bank hints at rate cuts was factored in before today's decision and comments from Governor Shaktikanta Das.

“Monetary policy will remain actively disinflationary,” said the governor.

But the RBI more or less dashed those expectations by sounding hawkish in its assessment of inflation.

Households hoping for some relief from already stretched budgets will, for now, have to deal with high borrowing costs.

RBI Policy: Inflation still a worry?

While inflation has eased for a few months, the central bank voiced concerns about food prices.

Retail inflation will remain above 5 per cent&nbsp;this fiscal year and next.

So, for consumers dealing with higher monthly payments towards their loans, any hope for them to come down anytime soon is just that - hope.

RBI Policy: Robust growth outlook

Despite a gloomy outlook for the global economy from the ongoing geopolitical unrest in West Asia and on the edge of Europe, the central bank sounded positive about the domestic economy.

Governor Das said India remains the fastest-growing major economy globally and has surprised everyone with its upside.

"The Indian economy presents a picture of resilience and momentum," according to Das.

"Growth remains resilient and robust, surprising everyone," he said.

After faster-than-anticipated growth in the July–September quarter, the central bank projects the economy to grow by 7 per cent&nbsp;in the current fiscal year, up from 6.5% in the previous year.

That helps the narrative for India's monetary policy on hold for longer as the country's bane for decades - supply-driven high inflation - still weighs on central bank decisions.

The deputy chief economist for emerging markets at Capital Economics, Shilan Shah, said, "The economy is performing exceptionally well, which limits any immediate need for looser policy."

RBI Governor said the inflation outlook, however, remains uncertain. He added that the near-term outlook is "masked by risks to food inflation."

On policy easing, Das said "loosening" was off the table, at the moment.

RBI Policy:&nbsp;Ahead of the curve?

The RBI wants to be ahead of the curve after dismissing rising price pressures as "transitory" in 2021, similar to reactions from major global central banks back then.

The world underestimated surging inflation and had to react more aggressively when price pressures soared to multi-decade highs globally.

But bets in recent months have increased for global interest rates to ease next year.

The RBI's tone suggested otherwise and pushed back on expectations for a rate cut cycle to later than earlier.

RBI Policy: What does it mean for consumers?

Clearly, the RBI's plans and commentary suggest there will be no respite from higher borrowing costs, especially for those with home loans.

The central bank's aggressive rate hikes pushed up equated monthly instalments for borrowers already dealing with higher prices of almost everything.

For some, the loan duration was increased by about five years.

Even if the RBI does start to cut rates at some point, the translation to lending costs will take longer.

Indeed, usually, banks pass on any change in rates on the up almost immediately to consumers but take longer to transmit any easing in interest rates.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India's central bank left its key repo rate unchanged at 6.5 per cent on Friday but warned elevated food inflation is still a concern. After six consecutive rate hikes between April 2022 and February this year, the Reserve Bank of India has kept monetary policy on hold.

India's central bank left its key repo rate unchanged at 6.5 per cent on Friday but warned elevated food inflation is still a concern. After six consecutive rate hikes between April 2022 and February this year, the Reserve Bank of India has kept monetary policy on hold. The likelihood the central bank hints at rate cuts was factored in before today's decision and comments from Governor Shaktikanta Das. “Monetary policy will remain actively disinflationary,” said the governor. But the RBI more or less dashed those expectations by sounding hawkish in its assessment of inflation. Households hoping for some relief from already stretched budgets will, for now, have to deal with high borrowing costs. RBI Policy: Inflation still a worry? While inflation has eased for a few months, the central bank voiced concerns about food prices. Retail inflation will remain above 5 per cent this fiscal year and next. So, for consumers dealing with higher monthly payments towards their loans, any hope for them to come down anytime soon is just that - hope. RBI Policy: Robust growth outlook Despite a gloomy outlook for the global economy from the ongoing geopolitical unrest in West Asia and on the edge of Europe, the central bank sounded positive about the domestic economy. Governor Das said India remains the fastest-growing major economy globally and has surprised everyone with its upside. "The Indian economy presents a picture of resilience and momentum," according to Das. "Growth remains resilient and robust, surprising everyone," he said. After faster-than-anticipated growth in the July–September quarter, the central bank projects the economy to grow by 7 per cent in the current fiscal year, up from 6.5% in the previous year. That helps the narrative for India's monetary policy on hold for longer as the country's bane for decades - supply-driven high inflation - still weighs on central bank decisions. The deputy chief economist for emerging markets at Capital Economics, Shilan Shah, said, "The economy is performing exceptionally well, which limits any immediate need for looser policy." RBI Governor said the inflation outlook, however, remains uncertain. He added that the near-term outlook is "masked by risks to food inflation." On policy easing, Das said "loosening" was off the table, at the moment. RBI Policy: Ahead of the curve? The RBI wants to be ahead of the curve after dismissing rising price pressures as "transitory" in 2021, similar to reactions from major global central banks back then. The world underestimated surging inflation and had to react more aggressively when price pressures soared to multi-decade highs globally. But bets in recent months have increased for global interest rates to ease next year. The RBI's tone suggested otherwise and pushed back on expectations for a rate cut cycle to later than earlier. RBI Policy: What does it mean for consumers? Clearly, the RBI's plans and commentary suggest there will be no respite from higher borrowing costs, especially for those with home loans. The central bank's aggressive rate hikes pushed up equated monthly instalments for borrowers already dealing with higher prices of almost everything. For some, the loan duration was increased by about five years. Even if the RBI does start to cut rates at some point, the translation to lending costs will take longer. Indeed, usually, banks pass on any change in rates on the up almost immediately to consumers but take longer to transmit any easing in interest rates. WATCH WION LIVE HERE

RBI policy: Reserve Bank of India's hawkish pause keeps households on edge

India's Paytm will issue fewer personal loans of 600 dollars or less. This annoucement comes weeks after India's Central Bank tightened rules on consumer lending after a surge in demand.

Paytm to issue fewer personal loans of 600 dollars or less | World Business Watch

The latest bulletin by India's central bank offers a mixed about the state of India's economy. The Reserve Bank of India's monthly bulletin said that while consumer demand has been upbeat, a lot needs to be done on the inflation front.

RBI's forecast on growth & inflation | World Business Watch

The European Central Bank is leading the charge toward a digital Euro, setting the stage for the latest evolution of money.

The global race for Central Bank digital currencies

In a significant development, the reserve bank of India, RBI, announced an extension of the deadline to return the country's highest denomination 2,000-rupee currency notes. Originally, the deadline was set for September 30th, but it has now been pushed to October 7th.

India’s central bank extends deadline for 2,000-rupee note return

Authorities have charged China's former deputy central bank governor, Fan Yifei, with bribery, China's state news agency Xinhua reported on Wednesday (Sep 27).

Fan, 59, is the highest-ranking official at the People's Bank of&nbsp;China&nbsp;to be prosecuted under President Xi Jinping's anti-graft drive over the past decade, in a campaign aimed at weeding out corrupt officials in the financial sector.

A native of Jiangsu province, Fan&nbsp;worked in the banking and finance sectors for several years and began serving as vice-governor of the People's Bank of China in February 2015

<a href="https://www.wionews.com/world/xi-jinping-tries-to-secure-his-throne-with-anti-corruption-drive-319556">Also read |&nbsp;Xi Jinping tries to secure his throne with anti-corruption drive</a>

Fan abused his positions at&nbsp;China&nbsp;Construction Bank, China&nbsp;Investment Corp., and the&nbsp;central&nbsp;bank to benefit others in exchange for a "particularly large amount" of bribes, Xinhua reported, without elaborating.

Reuters was not immediately able to reach Fan for comment.

<a href="https://www.wionews.com/videos/issues-china-is-facing-under-xi-jinping-639029">Watch |&nbsp;Issues China is facing under Xi Jinping</a>

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/issues-china-is-facing-under-xi-jinping-639029/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>
</div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

In June, Fan was expelled from the Communist Party and removed from his&nbsp;central&nbsp;bank post for serious violations of discipline and the law, state media reported.

He was placed under disciplinary review and supervisory investigation in November 2022 and was removed as vice-governor one month later.

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Authorities have charged China's former deputy central bank governor, Fan Yifei, with bribery, China's state news agency Xinhua reported on Wednesday (Sep 27). Fan, 59, is the highest-ranking official at the People's Bank of China to be prosecuted under President Xi Jinping's anti-graft drive over the past decade, in a campaign aimed at weeding out corrupt officials in the financial sector.

Authorities have charged China's former deputy central bank governor, Fan Yifei, with bribery, China's state news agency Xinhua reported on Wednesday (Sep 27). Fan, 59, is the highest-ranking official at the People's Bank of China to be prosecuted under President Xi Jinping's anti-graft drive over the past decade, in a campaign aimed at weeding out corrupt officials in the financial sector. A native of Jiangsu province, Fan worked in the banking and finance sectors for several years and began serving as vice-governor of the People's Bank of China in February 2015 Also read | Xi Jinping tries to secure his throne with anti-corruption drive Fan abused his positions at China Construction Bank, China Investment Corp., and the central bank to benefit others in exchange for a "particularly large amount" of bribes, Xinhua reported, without elaborating. Reuters was not immediately able to reach Fan for comment. Watch | Issues China is facing under Xi Jinping × In June, Fan was expelled from the Communist Party and removed from his central bank post for serious violations of discipline and the law, state media reported. He was placed under disciplinary review and supervisory investigation in November 2022 and was removed as vice-governor one month later. WATCH WION LIVE HERE:

China: Central bank's former deputy governor faces prosecution for bribery charges

The African National Congress, which now rules South Africa, has been given a warning by the country's central bank: "You can't spend your way out of trouble." The national treasury is pushing for austerity measures. But they've been met with resistance from those who are afraid of public unrest leading up to next year's election, in which the ANC might lose its overwhelming support.

South Africa's central bank issues a warning

The United Kingdom is currently experiencing a significant rise in inflation, impacting its already struggling economy. Inflation rates there have reached unprecedented levels. In this report, we delve deep into the cost-of-living crisis in the UK.

How inflation is affecting the UK economy

The central bank in Turkiye has a difficult situation as it hikes interest rates to attempt to address a cost-of-living problem since inflation has escalated far quicker than projected, with the biggest increase since the beginning of 2022.

Turkey's central bank battles inflation

Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter. &nbsp;

The offer, made by interim Prime Minister Anwaar-ul-Haq Kakar was accepted.

This week, at the end of the five-year term of the legislature and just weeks after securing a $3 billion loan package with the IMF to prevent a default, former prime minister Shehbaz Sharif turned over authority to Kakar. The new premier, whose main responsibility will be to supervise the national elections scheduled for November, promised to maintain economic policies while serving in an interim capacity.&nbsp;

Political parties want to base the elections on the most recent population census, which will take an additional three months to be completed. As a result, the polls are expected to be postponed.&nbsp;

In 2018, Akhtar, who oversaw the central bank from 2006 to 2009, briefly filled the position of the finance minister. She now serves as chairperson of Pakistan Stock Exchange Ltd. She has also held positions in the Asian Development Bank, the World Bank, and the United Nations.&nbsp;

(With inputs from agencies)&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter.

Pakistan has decided to appoint Shamshad Akhtar as the finance minister for the present government, ensuring the country’s commitments to the International Monetary Fund (IMF) for its key bailout program, Bloomberg reported citing two sources familiar with the matter. The offer, made by interim Prime Minister Anwaar-ul-Haq Kakar was accepted. This week, at the end of the five-year term of the legislature and just weeks after securing a $3 billion loan package with the IMF to prevent a default, former prime minister Shehbaz Sharif turned over authority to Kakar. The new premier, whose main responsibility will be to supervise the national elections scheduled for November, promised to maintain economic policies while serving in an interim capacity. Political parties want to base the elections on the most recent population census, which will take an additional three months to be completed. As a result, the polls are expected to be postponed. In 2018, Akhtar, who oversaw the central bank from 2006 to 2009, briefly filled the position of the finance minister. She now serves as chairperson of Pakistan Stock Exchange Ltd. She has also held positions in the Asian Development Bank, the World Bank, and the United Nations. (With inputs from agencies) WATCH WION LIVE HERE

Pakistan to choose ex-central banker as finance minister 

Have you ever wondered by central banks around the world hike interest rates whenever inflation is high? We decode the math.

Why central banks hike rates to tame inflation?

The US Federal Reserve on Wednesday raised its interest rates by 25 basis points to a range of 5.25-5.50 per cent, the highest in 22 years.&nbsp;Across the Atlantic, the European Central Bank, which regulates the euro zone, also raised its rates by 25 basis points to 3.75 per cent, the highest level since 2000-01.

Aggressive rate hikes are not limited to the United States or the euro zone. Sixteen of the the G20 countries - the biggest economies in the world - have raised rates over the past year. The only exceptions to this trend are Japan and China - the world's third-and second-largest economies respectively.

China has been cutting rates intermittently in order to boost its flagging economy. In June this year, its central bank cut a key medium-term lending rate from 2.75 per cent to 2.65 per cent. Japan, on the other hand, has been following an unconventional monetary policy, wherein the interest rate is near-zero.

But one country took the cake when it came to its monetary policy: Turkiye. The country took a contrarian approach and began cutting rates from the end of 2021. This however led to the Turkish Lira losing&nbsp;about 60 per cent of its value and burdening the government with high debt.

But whether countries hiked or cut interest rates, there has been one common factor influencing these decisions - high inflation.

'Black swan' events and inflation

When author Nassim Nicholas Taleb coined the term 'Black Swan' in his book of the same name, he may not have imagined the enormous impact of the word on the global economy. A 'black swan' event is an unexpected and random incident which has a long-lasting impact on the economy.

The Covid-induced global lockdowns and the ongoing Ukraine war are clearly 'black swan' events. The twin events, which hit the world within a gap of two years, continue to disrupt the global supply chains and commodities markets, leading to a slowdown in the global economy and massive inflation worldwide.

Global inflation continues to be above the pre-pandemic (2017-19) levels of 3.5 per cent. According to the International Monetary Fund's forecast, the global headline inflation -- this includes prices of food and energy -- stood at 8.7 per cent last year. It fell to 6.8 per cent in 2023 and is expected to further decline to 5.2 per cent in 2024.

The inflation monster has eaten into the pockets of people living in advanced as well as poorer countries. To put inflation&nbsp;numbers in&nbsp;perspective: Venezuela had an inflation rate of 400 per cent as per a 2023 IMF estimate, while inflation in the UK is expected to be around seven per cent this year. The UK's inflation rate is the highest among the advanced countries in 2023. &nbsp;

Decoding central bank's interest rate logic

Major central banks across the world have been raising their interest rates aggressively to combat surging inflation. In 21st Century economics, this is commonly called the 'Taylor rule'. Named after the US new-Keynesian economist John B Taylor, the rule entails a higher interest rate when the inflation rate is higher and vice versa.

The conventional argument is that a high interest rate makes it costlier for people to borrow money. With borrowing getting expensive, consumers are forced to spend less. When spending declines, there is a fall in demand. It is therefore postulated that weakening demand will eventually reduce the price of goods.

This is precisely the logic behind global central banks rising the interest rates, when the inflation rate is not in the target range. Inflation targetting is a major monetary policy tool used by central banks to keep inflation within a tolerable range. This tolerance band varies from country to country. In the US, the inflation target is at 2 per cent. In India, the target is 4 per cent, with 2 per cent being the lower range and six per cent being the upper limit.

The conventional monetary strategy has helped countries bring down inflation, though not to the levels they believe are ideal.

Negative impact of rate hikes

High interest rates however have an unintended negative pull on the economy. The ongoing economic downturn around the world is an example of central banks prioritising lower inflation over healthy economic growth.

To be fair, it is tough to be a central banker in 2023. Two 'black swan' events have threatened the global economy. Some countries are on the brink of bankruptcy, while some are facing the heat of rising cost of living. So, controlling inflation has become the priority.

But eventually, no country can truly come out of economic misery by just adjusting the monetary policy. That would mean prolonged stress on the growth prospects of a country.

Higher interest rates lead to a domino effect, with severe long-term consequences for economic growth. Higher interest rates lead to a fall in consumer demand as people have less income to spend. This in turn impacts industrial output as lower demand means less production. Eventually, lower industrial performance forces companies to lay off employees, leading to a rise in unemployment.

The ongoing global economic downturn encapsulates the domino effect pretty well. Many now argue that the looming fear of recession in several advanced countries is a result of central banks continuing with unabated rate hikes.

Currently, central bankers face a two-fold challenge. They need to deliver on economic growth to avoid a recession and also tame high inflation. It will be a tough balancing act. In monetary policy, that's called 'soft landing' - a situation where central banks will raise rates enough to fight inflation but without causing a severe economic downturn.

The US Federal Reserve on Wednesday raised its interest rates by 25 basis points to a range of 5.25-5.50 per cent, the highest in 22 years. Across the Atlantic, the European Central Bank, which regulates the euro zone, also raised its rates by 25 basis points to 3.

The US Federal Reserve on Wednesday raised its interest rates by 25 basis points to a range of 5.25-5.50 per cent, the highest in 22 years. Across the Atlantic, the European Central Bank, which regulates the euro zone, also raised its rates by 25 basis points to 3.75 per cent, the highest level since 2000-01. Aggressive rate hikes are not limited to the United States or the euro zone. Sixteen of the the G20 countries - the biggest economies in the world - have raised rates over the past year. The only exceptions to this trend are Japan and China - the world's third-and second-largest economies respectively. China has been cutting rates intermittently in order to boost its flagging economy. In June this year, its central bank cut a key medium-term lending rate from 2.75 per cent to 2.65 per cent. Japan, on the other hand, has been following an unconventional monetary policy, wherein the interest rate is near-zero. But one country took the cake when it came to its monetary policy: Turkiye. The country took a contrarian approach and began cutting rates from the end of 2021. This however led to the Turkish Lira losing about 60 per cent of its value and burdening the government with high debt. But whether countries hiked or cut interest rates, there has been one common factor influencing these decisions - high inflation. 'Black swan' events and inflation When author Nassim Nicholas Taleb coined the term 'Black Swan' in his book of the same name, he may not have imagined the enormous impact of the word on the global economy. A 'black swan' event is an unexpected and random incident which has a long-lasting impact on the economy. The Covid-induced global lockdowns and the ongoing Ukraine war are clearly 'black swan' events. The twin events, which hit the world within a gap of two years, continue to disrupt the global supply chains and commodities markets, leading to a slowdown in the global economy and massive inflation worldwide. Global inflation continues to be above the pre-pandemic (2017-19) levels of 3.5 per cent. According to the International Monetary Fund's forecast, the global headline inflation -- this includes prices of food and energy -- stood at 8.7 per cent last year. It fell to 6.8 per cent in 2023 and is expected to further decline to 5.2 per cent in 2024. The inflation monster has eaten into the pockets of people living in advanced as well as poorer countries. To put inflation numbers in perspective: Venezuela had an inflation rate of 400 per cent as per a 2023 IMF estimate, while inflation in the UK is expected to be around seven per cent this year. The UK's inflation rate is the highest among the advanced countries in 2023. Decoding central bank's interest rate logic Major central banks across the world have been raising their interest rates aggressively to combat surging inflation. In 21st Century economics, this is commonly called the 'Taylor rule'. Named after the US new-Keynesian economist John B Taylor, the rule entails a higher interest rate when the inflation rate is higher and vice versa. The conventional argument is that a high interest rate makes it costlier for people to borrow money. With borrowing getting expensive, consumers are forced to spend less. When spending declines, there is a fall in demand. It is therefore postulated that weakening demand will eventually reduce the price of goods. This is precisely the logic behind global central banks rising the interest rates, when the inflation rate is not in the target range. Inflation targetting is a major monetary policy tool used by central banks to keep inflation within a tolerable range. This tolerance band varies from country to country. In the US, the inflation target is at 2 per cent. In India, the target is 4 per cent, with 2 per cent being the lower range and six per cent being the upper limit. The conventional monetary strategy has helped countries bring down inflation, though not to the levels they believe are ideal. Negative impact of rate hikes High interest rates however have an unintended negative pull on the economy. The ongoing economic downturn around the world is an example of central banks prioritising lower inflation over healthy economic growth. To be fair, it is tough to be a central banker in 2023. Two 'black swan' events have threatened the global economy. Some countries are on the brink of bankruptcy, while some are facing the heat of rising cost of living. So, controlling inflation has become the priority. But eventually, no country can truly come out of economic misery by just adjusting the monetary policy. That would mean prolonged stress on the growth prospects of a country. Higher interest rates lead to a domino effect, with severe long-term consequences for economic growth. Higher interest rates lead to a fall in consumer demand as people have less income to spend. This in turn impacts industrial output as lower demand means less production. Eventually, lower industrial performance forces companies to lay off employees, leading to a rise in unemployment. The ongoing global economic downturn encapsulates the domino effect pretty well. Many now argue that the looming fear of recession in several advanced countries is a result of central banks continuing with unabated rate hikes. Currently, central bankers face a two-fold challenge. They need to deliver on economic growth to avoid a recession and also tame high inflation. It will be a tough balancing act. In monetary policy, that's called 'soft landing' - a situation where central banks will raise rates enough to fight inflation but without causing a severe economic downturn.

Decoded: Why central banks hike interest rates to tame inflation 

Pan Gongsheng is the man of the moment in China. He has been appointed as the governor of the country's central bank. This is a huge responsibility for pan, as the world's second-largest economy struggles to grow. 60-year-old Pan replaces Yi Gang, who has reached the retirement age of 65. His appointment signals that Beijing is prioritizing policy continuity. This is at a time when economic recovery is losing momentum and officials are grappling with various ways to boost confidence.

China appoints a new central bank governor

Suspended&nbsp;Nigerian&nbsp;central bank governor Godwin Emefiele appeared in court on Tuesday to deny illegally possessing a firearm and ammunition, the first time he has been seen in public in more than a month.

Emefiele was detained by the Department State Services (DSS) on June 10, a day after new President Bola Tinubu&nbsp;suspended&nbsp;him. A judge this month ordered the agency to file charges or release him.

Emefiele, dressed in a white kaftan and looking frail, pleaded not guilty to two counts of illegal possession of a firearm and ammunition, a Reuters reporter said.&nbsp;

The court granted Emefiele bail on condition of paying 20 million naira ($25,500) and said he should be remanded in custody in prison until the bail conditions are met or until Nov. 14, when next his case next comes up for hearing.&nbsp;

Also read | <a href="https://www.wionews.com/opinions-blogs/cluster-bombs-for-ukraine-highlight-us-aversion-to-international-treaties-618749">Cluster bombs for Ukraine highlight US aversion to international treaties</a>

Emefiele was re-arrested by DSS officers after clashing with prison officials who attempted to take him into custody in line with the court's ruling.&nbsp;

Government lawyers had asked the courts in June to authorise Emefiele's detention for allegedly misappropriating funds and "criminal breach of trust", charges that carry lengthy jail terms if proved.

They secured a court order to hold Emefiele pending further investigations.

Emefiele was known for using unorthodox policies to keep the country's naira currency artificially strong and lending directly to businesses to try to boost growth.

Also read |&nbsp;<a href="https://www.wionews.com/world/nigerian-president-rides-in-convoy-of-100-cars-draws-flak-611501">Nigerian president rides in convoy of 100+ cars, draws flak</a>

Tinubu, who is embarking on the boldest reforms in Africa's biggest economy in more than a decade, criticised the central bank's policies under Emefiele at his inauguration in May, saying they needed "thorough house-cleaning", without providing details.

The central bank is due later on Tuesday to announce its first interest rate decision since Emefiele's suspension. One of Emefiele's deputies, Folashodun Shonubi, is acting central bank governor.

WATCH WION LIVE HERE:&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

&nbsp;

Suspended Nigerian central bank governor Godwin Emefiele appeared in court on Tuesday to deny illegally possessing a firearm and ammunition, the first time he has been seen in public in more than a month.

Suspended Nigerian central bank governor Godwin Emefiele appeared in court on Tuesday to deny illegally possessing a firearm and ammunition, the first time he has been seen in public in more than a month. Emefiele was detained by the Department State Services (DSS) on June 10, a day after new President Bola Tinubu suspended him. A judge this month ordered the agency to file charges or release him. Emefiele, dressed in a white kaftan and looking frail, pleaded not guilty to two counts of illegal possession of a firearm and ammunition, a Reuters reporter said. The court granted Emefiele bail on condition of paying 20 million naira ($25,500) and said he should be remanded in custody in prison until the bail conditions are met or until Nov. 14, when next his case next comes up for hearing. Also read | Cluster bombs for Ukraine highlight US aversion to international treaties Emefiele was re-arrested by DSS officers after clashing with prison officials who attempted to take him into custody in line with the court's ruling. Government lawyers had asked the courts in June to authorise Emefiele's detention for allegedly misappropriating funds and "criminal breach of trust", charges that carry lengthy jail terms if proved. They secured a court order to hold Emefiele pending further investigations. Emefiele was known for using unorthodox policies to keep the country's naira currency artificially strong and lending directly to businesses to try to boost growth. Also read | Nigerian president rides in convoy of 100+ cars, draws flak Tinubu, who is embarking on the boldest reforms in Africa's biggest economy in more than a decade, criticised the central bank's policies under Emefiele at his inauguration in May, saying they needed "thorough house-cleaning", without providing details. The central bank is due later on Tuesday to announce its first interest rate decision since Emefiele's suspension. One of Emefiele's deputies, Folashodun Shonubi, is acting central bank governor. WATCH WION LIVE HERE:

Suspended central bank governor of Nigeria refutes claims of owning illegal firearms

Australia has appointed a woman, Michele Bullock to lead its central bank, the first time ever in the 63-year history of the Reserve Bank of Australia (RBA). A veteran economist at the central bank, Bullock will take over charge from the outgoing governor Philip Lowe in September this year.

“I am deeply honoured to have been appointed to this important position,” Bullock said in a statement on Friday. “It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards. I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people.”

Also Read |&nbsp;<a href="https://www.wionews.com/world/boris-johnson-forgets-password-of-phone-with-whatsapp-messages-for-covid-inquiry-615465">Boris Johnson 'forgets password' of phone with WhatsApp messages for Covid inquiry</a>

Australian Prime Minister Anthony Albanese described Bullock as an “outgoing economist and leader”.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
BREAKING: Congratulations Michele Bullock, Australia’s 9th Reserve Bank Governor. 
 
Michele is an outstanding economist, with a long and distinguished career at the central bank. 
 
At a critical time for the global economy, her job will be an important one.
— Anthony Albanese (@AlboMP) <a href="https://twitter.com/AlboMP/status/1679638574541729792?ref_src=twsrc%5Etfw">July 13, 2023</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

<h2>Who is Michele Bullock?</h2>

Bullock will become the first-ever woman to head the central bank. She will take charge as the governor of the Reserve Bank of Australia (RBA) on 18 September. She joined RBA in 1985 after graduating from Australia’s University of New England in 1984. She then pursued her master’s at the London School of Economics in 1989.

Bullock served in a variety of roles related to areas including payment settlements and government banking before being appointed as the first woman deputy governor in April 2022.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/trending/watch-rafale-flypast-over-paris-as-pm-modi-attends-bastille-day-parade-615549">WATCH | Rafale flypast over Paris as PM Modi attends Bastille Day parade</a>

Before leading the most important position at the central bank, she headed a string of increasingly important roles at the bank. She was appointed as the Assistant Governor from 2010-2022. She started her career as a Chief Manager of&nbsp;Payment Policy Department in 1998 and served in this position till 2007.&nbsp; 
 
Jonathan Kearns, a senior RBA executive before he left the bank to join Challenger in January, said Bullock was “very well credentialed and she is across every aspect of the RBA”.

<h2>What will be on Bullock’s agenda?</h2>

Bullock’s appointment comes after the government decided not to reappoint Lowe to a second seven-year term.&nbsp;

By the time Bullock takes over, the RBA committee will have met twice more on interest rates. As a board member, she will have a voice in shaping those decisions. Her attention will also be absorbed in part by the need to implement a range of recommendations resulting from the once-in-a-generation review of the RBA.

(With inputs from agencies) 
 
&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

&nbsp;

Australia has appointed a woman, Michele Bullock to lead its central bank, the first time ever in the 63-year history of the Reserve Bank of Australia (RBA). A veteran economist at the central bank, Bullock will take over charge from the outgoing governor Philip Lowe in September this year.

Australia has appointed a woman, Michele Bullock to lead its central bank, the first time ever in the 63-year history of the Reserve Bank of Australia (RBA). A veteran economist at the central bank, Bullock will take over charge from the outgoing governor Philip Lowe in September this year. “I am deeply honoured to have been appointed to this important position,” Bullock said in a statement on Friday. “It is a challenging time to be coming into this role, but I will be supported by a strong executive team and boards. I am committed to ensuring that the Reserve Bank delivers on its policy and operational objectives for the benefit of the Australian people.” Also Read | Boris Johnson 'forgets password' of phone with WhatsApp messages for Covid inquiry Australian Prime Minister Anthony Albanese described Bullock as an “outgoing economist and leader”. BREAKING: Congratulations Michele Bullock, Australia’s 9th Reserve Bank Governor. Michele is an outstanding economist, with a long and distinguished career at the central bank. At a critical time for the global economy, her job will be an important one. — Anthony Albanese (@AlboMP) July 13, 2023 × Who is Michele Bullock? Bullock will become the first-ever woman to head the central bank. She will take charge as the governor of the Reserve Bank of Australia (RBA) on 18 September. She joined RBA in 1985 after graduating from Australia’s University of New England in 1984. She then pursued her master’s at the London School of Economics in 1989. Bullock served in a variety of roles related to areas including payment settlements and government banking before being appointed as the first woman deputy governor in April 2022. Also Read | WATCH | Rafale flypast over Paris as PM Modi attends Bastille Day parade Before leading the most important position at the central bank, she headed a string of increasingly important roles at the bank. She was appointed as the Assistant Governor from 2010-2022. She started her career as a Chief Manager of Payment Policy Department in 1998 and served in this position till 2007. Jonathan Kearns, a senior RBA executive before he left the bank to join Challenger in January, said Bullock was “very well credentialed and she is across every aspect of the RBA”. What will be on Bullock’s agenda? Bullock’s appointment comes after the government decided not to reappoint Lowe to a second seven-year term. By the time Bullock takes over, the RBA committee will have met twice more on interest rates. As a board member, she will have a voice in shaping those decisions. Her attention will also be absorbed in part by the need to implement a range of recommendations resulting from the once-in-a-generation review of the RBA. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Who is Michele Bullock? First-ever female governor of Australia's central bank

Inflation, the lingering adversary of central banks, continues to confound policymakers worldwide. Gita Gopinath has raised a red flag, warning that the battle to tame inflation may take longer than anticipated. At the European central bank's annual gathering in Sintra, Portugal, Gopinath cautioned that central banks have been underestimating the persistent inflationary pressures, particularly in the services sector.

Reality check: Central banks confront inflation's resilience

India's Central Bank - the Reserve Bank of India - is all to meet for three days, starting today. In the meeting, the Central Bank is expected to announce its latest monetary policy. Now, all eyes are on RBI governor Shaktikanta Das - will he cut rates or keep it unchanged?

India's RBI to meet over monetary policy

Two senior members of the European Central Bank (ECB) have&nbsp;taken a stand against the banking &amp; finance industry's failure to promote gender diversity in its upper ranks.

Frank Elderson, an ECB Executive Board member and Elizabeth McCaul, an ECB's Supervisory Board member, have expressed their disappointment with the current state of affairs in a blog post on Tuesday, as per a Bloomberg report.

While acknowledging that&nbsp;some progress has been made in promoting gender diversity, they believed that targets set by banks have remained insufficient.&nbsp;Describing banking as "still a man's world", Elderson and McCaul have called for more ambitious but credible gender diversity targets.&nbsp;

The ECB has integrated gender diversity into its guide for fit and proper assessments since 2021, ensuring that the right senior managers assume leadership roles within banks. However, of the 361 chief executives named at significant institutions and their subsidiaries between 2020 and 2022, over 300 were men.

While the average diversity targets for management bodies rose from 32 percent in 2020 to 34 percent by the end of last year, the ECB has revealed&nbsp;that approximately one-third of significant institutions did not meet their own targets. This lack of progress has led Elderson and McCaul to doubt the achievability of these targets in the near future.

Moreover, the ECB duo has&nbsp;emphasised&nbsp;the need for countries to adopt the&nbsp;European Union's forthcoming Women on Boards Directive. According to this directive, boards will only be considered balanced when at least 40 percent&nbsp;of the members are female.&nbsp;

Elderson and McCaul have also affirmed their commitment to utilising the existing supervisory tools available within national legislation to insist on improvements and address any internal governance shortcomings related to gender diversity within banks.

In a related study, the&nbsp;International Monetary Fund (IMF) has criticised central banks, including the ECB, for their inadequate progress in achieving gender diversity. According to the IMF survey, central banks, on average, filled less than half of their positions with women. Furthermore, the study revealed that the hired women were often relegated to lower-paid administrative roles or human relations.

Goldman Sachs settles gender discrimination&nbsp;suit&nbsp;

In a groundbreaking move, Goldman Sachs&nbsp;has agreed to pay a staggering $215 million to resolve a long-standing class-action lawsuit accusing the Wall Street powerhouse of systematic underpayment of women.

Reuters reported that the New York-based bank has settled the matter with lawyers, who represent&nbsp;approximately 2,800 female associates and vice presidents, marking a significant step towards addressing gender inequality in the financial sector.

The imminent trial, scheduled to commence in June in New York, would have offered a rare public platform for examining the pervasive issue of inequality within the industry. It is worth noting that, except for one, all of the six largest US&nbsp;banks have historically been led by men. Recognising the potential impact of this high-profile trial, the two parties hurriedly worked to settle before the proceedings began.

Notably, the settlement amount exceeds the sum paid by Smith Barney several decades ago to resolve the infamous "Boom-Boom Room" suit, which had accused the firm of harassment and discrimination.

Two senior members of the European Central Bank (ECB) have taken a stand against the banking & finance industry's failure to promote gender diversity in its upper ranks.

Two senior members of the European Central Bank (ECB) have taken a stand against the banking & finance industry's failure to promote gender diversity in its upper ranks. Frank Elderson, an ECB Executive Board member and Elizabeth McCaul, an ECB's Supervisory Board member, have expressed their disappointment with the current state of affairs in a blog post on Tuesday, as per a Bloomberg report. While acknowledging that some progress has been made in promoting gender diversity, they believed that targets set by banks have remained insufficient. Describing banking as "still a man's world", Elderson and McCaul have called for more ambitious but credible gender diversity targets. The ECB has integrated gender diversity into its guide for fit and proper assessments since 2021, ensuring that the right senior managers assume leadership roles within banks. However, of the 361 chief executives named at significant institutions and their subsidiaries between 2020 and 2022, over 300 were men. While the average diversity targets for management bodies rose from 32 percent in 2020 to 34 percent by the end of last year, the ECB has revealed that approximately one-third of significant institutions did not meet their own targets. This lack of progress has led Elderson and McCaul to doubt the achievability of these targets in the near future. Moreover, the ECB duo has emphasised the need for countries to adopt the European Union's forthcoming Women on Boards Directive. According to this directive, boards will only be considered balanced when at least 40 percent of the members are female. Elderson and McCaul have also affirmed their commitment to utilising the existing supervisory tools available within national legislation to insist on improvements and address any internal governance shortcomings related to gender diversity within banks. In a related study, the International Monetary Fund (IMF) has criticised central banks, including the ECB, for their inadequate progress in achieving gender diversity. According to the IMF survey, central banks, on average, filled less than half of their positions with women. Furthermore, the study revealed that the hired women were often relegated to lower-paid administrative roles or human relations. Goldman Sachs settles gender discrimination suit In a groundbreaking move, Goldman Sachs has agreed to pay a staggering $215 million to resolve a long-standing class-action lawsuit accusing the Wall Street powerhouse of systematic underpayment of women. Reuters reported that the New York-based bank has settled the matter with lawyers, who represent approximately 2,800 female associates and vice presidents, marking a significant step towards addressing gender inequality in the financial sector. The imminent trial, scheduled to commence in June in New York, would have offered a rare public platform for examining the pervasive issue of inequality within the industry. It is worth noting that, except for one, all of the six largest US banks have historically been led by men. Recognising the potential impact of this high-profile trial, the two parties hurriedly worked to settle before the proceedings began. Notably, the settlement amount exceeds the sum paid by Smith Barney several decades ago to resolve the infamous "Boom-Boom Room" suit, which had accused the firm of harassment and discrimination.

Banking's gender gap exposed: ECB and IMF call for diversity revolution

Alphabet-owned Google has suspended hundreds of loan apps in Kenya providing unsecured personal or business loans. The apps had been taken down after failing to comply with Google's new policy requiring digital lenders to submit proof of licence, according to a TechCrunch report.

Alphabet-owned Google has suspended hundreds of loan apps in Kenya providing unsecured personal or business loans. The apps had been taken down after failing to comply with Google's new policy requiring digital lenders to submit proof of licence, according to a TechCrunch report. It is unclear how many apps have been booted out but expert estimates suggest that the ballpark figure could be around 500 with popular apps like MoKash and Okash receiving the axe. Up until last month, over 600 apps were active on the Play Store but that number has come down to under 200 as of Friday (March 24). After Kenya's central bank issued regulations for Digital Credit Providers (DCPs) last year, the US-based tech giant also published its new policy in January, requiring credit-providing applications to obtain licences from the top bank. According to reports, only 22 digital creditors such as Tala, Pezesha and Jumo had managed to get the licence from the Central Bank of Kenya (CBK) till January. ALSO READ | $100 bn wiped off Alphabet's shares after Google AI chatbot 'Bard' flubs answer The regulations state that any digital lender that is yet to get a licence from CBK can receive an interim approval for Google which is only valid for 45 days. Once the period lapses, the company should either have received the approval or file a declaration that its permit was still pending. However, if the company failed to do so, its interim approval will be rescinded and it will be removed from the app store. WATCH | Tech giants compete for best in AI × The unregulated loan app business has been booming across most countries. However, the exorbitant interest rates and predatory practices employed by the companies to exact the loan amount has tarnished the reputation of the particular digital sector. Google has been steadily moving to curb the menace of digital loan apps. It banned over 2,000 loan apps in India last year by citing violation of norms, misrepresentation of information and questionable offline behaviour as the reason. (With inputs from agencies) WATCH WION LIVE HERE:

Google cracks down on loan apps, removes hundreds from Play Store in Kenya

Pakistan's central bank on Thursday (March 2) hiked key policy rate by 300 basis points. The rate was hiked to 20 per cent, the highest in last 26 years. The cash-strapped South Asian country is scrambling to fulfil another demand by International Monetary Fund (IMF) for release of USD 1.1 billion tranche which is aimed at preventing an economic meltdown.

Pakistani rupee is in a freefall mode. On Thursday, it touched a historic low of 285.09 against US Dollar.

The country is taking various steps to get aid from the global lender under a USD 7 billion loan facility, which the International Monetary Fund (IMF) is refusing unless crucial decisions are made by the government and implemented.

The policy rate hike is 100 basis points higher than the financial market consensus of 200 basis points.

In its Monetary Policy Statement, the State Bank of Pakistan said that it had revised its inflation projection to 27-29 per cent for the current fiscal year.

In its meeting in Karachi, the Monetary Policy Committee (MPC) noted that the recent fiscal adjustments and exchange rate depreciation led to a significant deterioration in the near-term inflation outlook and a further upward drift in inflation expectations, as reflected in the latest wave of surveys.

The committee expects a further rise in inflation in the next few months as the impact of these adjustments unfolds before inflation begins to decrease, albeit at a gradual pace.

During its last meeting in January, the MPC highlighted near-term risks to the inflation outlook from external and fiscal adjustments. Most of these risks have materialised and are partially reflected in the inflation numbers for February.

"The national CPI inflation has surged to 31.5 per cent year-on-year, while core inflation rose to 17.1 per cent in urban and 21.5 per cent in the rural basket in February 2023," it said.

(With inputs from agencies)

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

WATCH WION LIVE HERE

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false"><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

&nbsp;

Pakistan's central bank on Thursday (March 2) hiked key policy rate by 300 basis points. The rate was hiked to 20 per cent, the highest in last 26 years. The cash-strapped South Asian country is scrambling to fulfil another demand by International Monetary Fund (IMF) for release of USD 1.

Pakistan's central bank on Thursday (March 2) hiked key policy rate by 300 basis points. The rate was hiked to 20 per cent, the highest in last 26 years. The cash-strapped South Asian country is scrambling to fulfil another demand by International Monetary Fund (IMF) for release of USD 1.1 billion tranche which is aimed at preventing an economic meltdown. Pakistani rupee is in a freefall mode. On Thursday, it touched a historic low of 285.09 against US Dollar. The country is taking various steps to get aid from the global lender under a USD 7 billion loan facility, which the International Monetary Fund (IMF) is refusing unless crucial decisions are made by the government and implemented. The policy rate hike is 100 basis points higher than the financial market consensus of 200 basis points. In its Monetary Policy Statement, the State Bank of Pakistan said that it had revised its inflation projection to 27-29 per cent for the current fiscal year. In its meeting in Karachi, the Monetary Policy Committee (MPC) noted that the recent fiscal adjustments and exchange rate depreciation led to a significant deterioration in the near-term inflation outlook and a further upward drift in inflation expectations, as reflected in the latest wave of surveys. The committee expects a further rise in inflation in the next few months as the impact of these adjustments unfolds before inflation begins to decrease, albeit at a gradual pace. During its last meeting in January, the MPC highlighted near-term risks to the inflation outlook from external and fiscal adjustments. Most of these risks have materialised and are partially reflected in the inflation numbers for February. "The national CPI inflation has surged to 31.5 per cent year-on-year, while core inflation rose to 17.1 per cent in urban and 21.5 per cent in the rural basket in February 2023," it said. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Pakistan: Central bank hikes policy rate by 300 basis points

The central bank of Nepal on Friday banned the citizens from making investments in foreign nations, issuing a warning that strict punishment would be given in such a case.

The central bank, Nepal Rastra Bank, issued a notice saying that Nepalese nationals cannot purchase houses, debenture, land and property in a foreign land and cannot deposit money in financial institutions and foreign banks abroad.

ALSO READ|&nbsp;<a href="https://www.wionews.com/world/nepal-president-gives-one-week-deadline-to-parties-to-form-new-government-544275">Nepal president grants one-week time to parties for forming new government</a>

The notice specified that no one can make any kind of payment in a foreign nation except if the bank specifically mentions it under the provision.

The citizens were appealed by the central bank to not get themselves assigned any work which may require payment from abroad, except according to the prescribed rules.

The notice added that if rules are violated by anyone, the authorities will take strict action under the prevailing laws.

WATCH|&nbsp;WION Dispatch: Nepal President wants new PM by Christmas

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/wion-dispatch-nepal-president-wants-new-pm-by-christmas-544590/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Last year in April, the central bank of Nepal banned the import of luxury items and vehicles citing receding foreign exchange reserves and liquidity crunch, despite the assurance of the government that the economy will not witness a crisis similar to Sri Lanka.

The total foreign exchange reserves of Nepal increased marginally in mid-December by around 3 per cent to reach USD 9.82 billion, which can be used to manage imports for 8.7 months, as per the central bank data.&nbsp;

(With inputs from agencies) 
&nbsp;

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

The central bank of Nepal on Friday banned the citizens from making investments in foreign nations, issuing a warning that strict punishment would be given in such a case.

The central bank of Nepal on Friday banned the citizens from making investments in foreign nations, issuing a warning that strict punishment would be given in such a case. The central bank, Nepal Rastra Bank, issued a notice saying that Nepalese nationals cannot purchase houses, debenture, land and property in a foreign land and cannot deposit money in financial institutions and foreign banks abroad. ALSO READ| Nepal president grants one-week time to parties for forming new government The notice specified that no one can make any kind of payment in a foreign nation except if the bank specifically mentions it under the provision. The citizens were appealed by the central bank to not get themselves assigned any work which may require payment from abroad, except according to the prescribed rules. The notice added that if rules are violated by anyone, the authorities will take strict action under the prevailing laws. WATCH| WION Dispatch: Nepal President wants new PM by Christmas Last year in April, the central bank of Nepal banned the import of luxury items and vehicles citing receding foreign exchange reserves and liquidity crunch, despite the assurance of the government that the economy will not witness a crisis similar to Sri Lanka. The total foreign exchange reserves of Nepal increased marginally in mid-December by around 3 per cent to reach USD 9.82 billion, which can be used to manage imports for 8.7 months, as per the central bank data. (With inputs from agencies)

Central bank bars Nepalese nationals from investing in foreign nations

The Swiss National Bank expects a $143 billion loss for the 2022 financial year, the biggest loss in its 116-year history. Watch this to know more.

World Business Watch: Swiss central bank posts biggest loss in 116 years

European investigators will visit Lebanon next month as part of a probe into the wealth of central bank governor Riad Salameh, a judicial official said on Tuesday.

The long-serving central bank chief, 72, is among top officials widely blamed for Lebanon's unprecedented economic crisis, dubbed one of the worst in modern global history by the World Bank.

In March, France, Germany and Luxembourg seized properties and frozen assets worth 120 million euros ($130 million) in a major operation linked to a probe launched by French investigators into Salameh's personal wealth.

"Delegations including general prosecutors and investigative judges and financial prosecutors from Germany, Luxembourg and France... will arrive in Beirut between January 9 and 20," the Lebanese judicial official told AFP.

The visit aims to conduct investigations into financial affairs linked to Salameh, the official added, requesting anonymity as he was not authorised to speak to the media.

Authorities in the three European countries notified Lebanon's general prosecutor of their intention to question "Salameh, officials at Lebanon's central bank and the heads of commercial banks", the official said.

The delegations have not requested assistance from the Lebanese judiciary, according to the official.

Lebanon opened a probe into Salameh's wealth last year after the office of Switzerland's top prosecutor requested assistance in an investigation into more than $300 million which he allegedly embezzled out of the central bank with the help of his brother.

In June, a Lebanese prosecutor probing Salameh on suspicion of financial misconduct requested charges be issued against him based on preliminary investigative findings, a court official said at the time.

Both Salameh brothers have repeatedly denied any wrongdoing.

The central bank chief has remained at the helm despite the probes and Lebanese courts imposing a travel ban on him.

WATCH WION LIVE HERE:

<iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed" style="width:100%;max-width:560px;" width="560"></iframe>

European investigators will visit Lebanon next month as part of a probe into the wealth of central bank governor Riad Salameh, a judicial official said on Tuesday.

European investigators will visit Lebanon next month as part of a probe into the wealth of central bank governor Riad Salameh, a judicial official said on Tuesday. The long-serving central bank chief, 72, is among top officials widely blamed for Lebanon's unprecedented economic crisis, dubbed one of the worst in modern global history by the World Bank. In March, France, Germany and Luxembourg seized properties and frozen assets worth 120 million euros ($130 million) in a major operation linked to a probe launched by French investigators into Salameh's personal wealth. "Delegations including general prosecutors and investigative judges and financial prosecutors from Germany, Luxembourg and France... will arrive in Beirut between January 9 and 20," the Lebanese judicial official told AFP. The visit aims to conduct investigations into financial affairs linked to Salameh, the official added, requesting anonymity as he was not authorised to speak to the media. Authorities in the three European countries notified Lebanon's general prosecutor of their intention to question "Salameh, officials at Lebanon's central bank and the heads of commercial banks", the official said. The delegations have not requested assistance from the Lebanese judiciary, according to the official. Lebanon opened a probe into Salameh's wealth last year after the office of Switzerland's top prosecutor requested assistance in an investigation into more than $300 million which he allegedly embezzled out of the central bank with the help of his brother. In June, a Lebanese prosecutor probing Salameh on suspicion of financial misconduct requested charges be issued against him based on preliminary investigative findings, a court official said at the time. Both Salameh brothers have repeatedly denied any wrongdoing. The central bank chief has remained at the helm despite the probes and Lebanese courts imposing a travel ban on him. WATCH WION LIVE HERE:

Europe investigators to visit Lebanon in central bank chief probe

central-bank

Central Bank, News on Central Bank, stories on Central Bank, articles on Central Bank, Central Bank stories at Wion, Central Bank news, Central Bank latest news