Canada

Fed pledges more cash to combat interbank woe

In a bid to further ease money market tensions, the Federal Reserve said on Friday that it will increase the amount of extra funds on offer through its additional open market operations after both of its December auctions were heavily oversubscribed.

Cooperation can't get to root cause of crunch

The central banks' coordinated attempt to bring interbank rates down may alleviate liquidity pressures, but not the mistrust the lies at the core of the crunch, says Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm.

Subprime aftermath risks exacerbating imbalances

Financial market turbulence, together with a significant slowdown in the United States, could lead to and be exacerbated by a disorderly resolution of global current account imbalances, says the Bank of Canada's latest Financial System Review.

ECB keeps rates at 4%

The European Central Bank's (ECB) rate-setting Governing Council held its benchmark rate at 4%. The vote contrasts with decisions in recent days to cut rates from the Bank of Canada and the Bank of England.

There's a riot goin' on

By analysing so-called "riot points", we can see that the current crisis is spreading and deepening, says Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm.

Zhou parries appreciation calls

Zhou Xiaochuan, the governor of the People's Bank of China, said that the central bank could widen the renminbi's trading range if deemed necessary.

Canadian dollar begins to slide

The Canadian dollar fell on Thursday from an all-time high as worries grew over the effect of the US subprime mortgage crisis on corporate profits and stocks slumped. Analysts said that the market was "definitely overextended".

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