World to Fed: We’re Prepared for US Rate Hike, So Don’t Delay – Reuters
Central bankers from around the world are telling their American counterparts that they are ready for a U.S. interest rate hike and would prefer that the Federal Reserve make the move without further ado.
Fed at Jackson Hole: Gearing Up to Hike Amidst Rocky Terrain – Australian Financial Review (subscription)
Central bankers aren’t a group that’s easily spooked. Whether looking through low inflation or brushing aside financial market turmoil, US policy makers at the Kansas City Federal Reserve’s annual retreat in Jackson Hole, Wyoming, had a largely consistent message: We’re staying the course.
A Currency Drop is Inflationary, Right? – Bloomberg
The central banker’s task of keeping inflation just right has become a permanent tussle with the global currency markets. Too weak a currency equals too rapid price gains. Too strong, and disinflation looms.
Asian Currencies Record Biggest Monthly Decline in Three Years – Bloomberg
Asia’s currencies posted their biggest monthly loss in three years, led by Malaysia’s ringgit, after a yuan devaluation heightened the risk of a currency war in the region as the US prepares to raise interest rates.
Emerging-Market Currency Risk Shifts to Lenders – Wall Street Journal (subscription)
Foreign investors who bought local currency bonds are among biggest losers of recent selloff.
China Premier Li Says No Basis for Yuan’s Continued Depreciation – Bloomberg
Chinese Premier Li Keqiang said there was no basis for a continued depreciation of the yuan after the central bank allowed the currency to devalue 2.8 percent this month.
Crises Put First Dents in Xi Jinping’s Power – Wall Street Journal (subscription)
Shortly before President Xi Jinping boarded a plane last month to attend a summit in Russia, his office issued an executive order: China’s stock markets must go back up.
Norway to Sell FX Equivalent of NOK 700 Mln Per Day in September – Reuters
Norway’s central bank will sell foreign currencies equivalent of 700 million Norwegian crowns ($84.16 million) per day in September, unchanged from its practice in August.
Top Hong Kong Banker Says Dollar Peg Vital for Stability – Reuters
Hong Kong risks losing an important tool for maintaining its market stability if it scraps its currency’s peg to the U.S. dollar, said a top Standard Chartered China executive who also advises the government on financial policy.