The Reserve Bank of India is providing Rs50bn ($800m) to small enterprises for refinancing, a boost to businesses that are suffering from tight liquidity as Asia’s third largest economy slows. Read more
The People’s Bank of China on Monday finally went public over the country’s liquidity squeeze.
Its first statement on the cash crunch helped ease the pressures in the money markets and bring down short-term borrowing costs. But it did nothing to reassure investors in the stock market, where the Shanghai Composite plunged 5.3 per cent, taking its losses over the last two weeks to more than 12 per cent.
That seems logical – the authorities don’t want a banking crisis. But they appear to be serious about putting the brakes on credit growth, even at the cost of slowing the economy. Read more
Reinforcing its reputation of spotting problems early and taking action, Chile’s central bank is seeking to head off end-of-year liquidity strains by reinstating a tactic it used last year: a temporary repurchase window allowing banks to pawn bonds for cash. Read more