Daily Archives: May 31, 2010

Simone Baribeau

The US will have one major advantage before it starts using its term deposit facility in earnest. It gets to see how effectively a similar facility mops up excess liquidity in Europe.

Tomorrow, the ECB will look to attract €35bn to be deposited for one week for an interest rate of up to 1 per cent. The move comes as the eurozone’s central bank looks to reduce the inflationary pressures that could be created by its recent bond purchases. Read more

Ralph Atkins

From FT.com

The eurozone’s financial sector and economy are facing “hazardous contagion” effects from the region’s debt crisis, according to the European Central Bank, which has also predicted another €195bn in bank writedowns this year and next. Read more

Simone Baribeau

Raise or hold?

Russia has chosen the third option: cut. Read more

By Bernard Simon in Toronto

Mark Carney has not faced a decision whether to raise interest rates since he took the reins at the Bank of Canada in February 2008. But he will on Tuesday when the bank issues its regular monetary-policy reviewRead more