Latest Finance-Economy News
Fed Issues Payment Account Proposal
The Federal Reserve issued a request for information on payment accounts for eligible financial institutions. BPI responded emphasizing the need for scrutiny to mitigate credit, settlement, and illicit finance risks. This aims to establish minimum protections for expanded Fed account access.
IMF Approves US$206 Million Emergency Aid for Sri Lanka
The IMF Executive Board approved US$206 million under the Rapid Financing Instrument for Sri Lanka following a cyclone. The aid supports recovery amid fiscal prudence and reform progress from a prior economic crisis. The Central Bank stands ready to provide liquidity if needed.
Bank of Japan Hikes Rates to 0.75%
The Bank of Japan raised its main rate by 0.75% from 0.50%, the highest in 30 years, but messaging was seen as less hawkish, weakening the yen. This contrasts with other central banks' cuts.
Bank of England Cuts Rates to 3.75%
The BoE cut rates to 3.75%, the lowest in nearly three years, with a 5-4 split vote perceived as hawkish. UK Q3 GDP updates and PMIs show modest growth amid easing inflation.
S&P Global PMIs Show G4 Output Expansion
Flash PMI surveys indicate output rising in the US, Eurozone, Japan, and UK for an eighth month, though US outperformance narrows. New orders weakened in the US due to tariff-related prices.
US Fed Funds Rate at 3.5-3.75% After Third Cut
The FOMC lowered the Fed funds rate to a three-year low of 3.5-3.75% in December's third consecutive cut. FOMC minutes will assess further rate cut appetite.
PayPal Applies for Industrial Loan Company Charter
PayPal announced an application for an ILC charter, raising concerns over eroding separation of banking and commerce. Senate unlikely to vote on crypto market structure bill in 2025.
EU Payments Fraud Rises to €4.2 Billion in 2024
ECB and EBA report payments fraud in the European Economic Area totaled €4.2 billion in 2024, up from €3.5 billion in 2023. This highlights ongoing risks in digital payments.
China Trade Surplus Hits Record $1 Trillion
China’s trade surplus exceeded $1 trillion in the first eleven months despite trade wars, with demand from non-US markets compensating. No new demand-side stimulus announced.
US Q3 GDP Second Estimate Expected at 3.2%
The second estimate for US Q3 GDP is forecast to confirm 3.2% annualized growth, with focus on final domestic demand. Upcoming data includes industrial production and consumer confidence.
Emerging Markets Debt Gains Led by Argentina
EM hard-currency debt rose 0.4%, with Argentina (+3.0%) and Cote d’Ivoire (+1.7%) leading on policy improvements. Local-currency debt up 0.16% YTD at +18.19%.
DOJ Queries Fed on Profitability for CFPB Funding
The US Department of Justice asked the Fed if revenues exceed interest expenses, potentially aiding CFPB funding replenishment. This follows Fed operating losses.