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☆ Dollar reigns as Europe's central banks spring some surprises
▼ + stars: | 2023-09-21 | by ( Marc Jones | ) www.reuters.com time to read: +5 min

"It punctures the balloon on terminal rates and also creates more second guessing on the quality of the (economic) landings". With a crucial Bank of Japan meeting still to come this week, Japan's 10-year government bond yield rose to its highest in a decade. Ben Luk, senior multi-asset strategist at State Street Global Markets said the overall tone of the Fed's meeting on Wednesday, while not overly hawkish, included two surprises. The median forecast for the federal funds rate is 5.1% by year-end, up from 4.6% estimated in June. Additional reporting by Xie Yu in Hong Kong Editing by Shri Navaratnam and Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

Persons: BoE, Bond, John Hardy, Hardy, Goldman Sachs, Tom Hopkins, Ben Luk, Wall, Brent, clawing, Gold, Xie Yu, Shri Navaratnam, Tomasz Janowski Organizations: Sterling, Swiss, U.S . Federal Reserve, Dealers, Swiss National Bank, Bank of England, Saxo Bank, BRI Wealth Management, Treasury, Reuters Graphics, Apple, Nvidia, Japan's Nikkei, of Japan, State Street Global Markets, Thomson Locations: Europe, Britain, Sweden, Norway, Turkey, U.S, Asia, Pacific, Japan, Saudi Arabia, Russia, Hong Kong

☆ Pound, franc slide as central banks pause hikes; dollar holds firm
▼ + stars: | 2023-09-21 | by ( Samuel Indyk | ) www.reuters.com time to read: +4 min

The euro rose as high as 0.9677 francs and is set for its biggest one-day rise since June. The dollar rose 0.8% to 0.9053 francs , hitting its highest level since June 13. "The Swiss franc has understandably weakened after the surprise hold in the policy rate today," ING strategists said in a note. Meanwhile, Sweden's Riksbank and Norway's central bank both raised rates by 25 basis points, in line with expectations. Although you never know for sure with this central bank," said Matt Simpson, senior market analyst at City Index.

Persons: Dado Ruvic, Sterling, Goldman Sachs, Michael Cahill, Sweden's, Niels Christensen, Matt Simpson, Samuel Indyk, Brigid Riley, Kevin Buckland, Sam Holmes, Shri Navaratnam, Sharon Singleton Organizations: REUTERS, Swiss, British, U.S . Federal Reserve, Friday's Bank of Japan, Bank of England, Swiss National Bank, ING, Fed, Bank of Japan, New Zealand, NZ, Thomson Locations: Swiss, Sweden, Norway, Swedish, Norwegian

[1/2] Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. Credit Suisse, which was Switzerland's second-biggest bank, suffered years of scandals and losses before it had to be rescued in March in a state-engineered takeover by UBS. Credit Suisse declined to comment. Spokespeople for central banks in South Korea, India, Ireland, and Saudi Arabia also did not immediately respond to Reuters requests for comment. Last month, a Moscow court banned UBS and Credit Suisse from disposing of shares in their Russian subsidiaries, Reuters reported, citing court documents.

Persons: Denis Balibouse, Laws, Engen Tham, Selena Li, Jihoon Lee, Alexander Marrow, Sumeet Chatterjee, Stephen Coates, Alexander Smith Organizations: Credit Suisse, UBS, REUTERS, Rights, Reuters, Suisse, Western, Thomson Locations: Zurich Switzerland, Rights SHANGHAI, HONG KONG, South Korea, India, Swiss, Ireland, Saudi Arabia, Russia, Moscow, Ukraine, Bahrain, Dubai, Abu Dhabi, Japan, Thailand, Turkey, Shanghai, Hong Kong, London

☆ Morning Bid: Fed leaves shoe dangling in policy parade
▼ + stars: | 2023-09-21 | by ( ) www.reuters.com time to read: +5 min

At least eight major central banks are meeting on Thursday. Central banks in South Africa and Turkey are also meeting. Futures now show the implied Fed policy rate for the end of next year at a new cycle high of 4.85% - up a whopping 35 basis points in just over a week. Key developments that should provide more direction to U.S. markets later on Thursday:* Bank of England policy decision; South Africa Reserve Bank policy decision, Central Bank of Turkey policy decision. European Central Bank President Christine Lagarde speaks* Philadelphia Fed's September business survey, U.S. weekly jobless claims, U.S. Aug existing home sales, U.S. Q2 current account estimate.

Persons: Sarah Silbiger, Mike Dolan, Jerome Powell, Goldman Sachs, Goldman, Jan Hatzius, Robin Brooks, Brooks, BoE, Christine Lagarde, Darden, Christina Fincher Organizations: Eccles Federal Reserve, Washington , D.C, REUTERS, Swiss National Bank, Bank of, Fed, for International Finance, Treasury, Swiss, Africa Reserve Bank, Central Bank of, European Central Bank, Factset, Reuters, Thomson Locations: Washington ,, U.S, Norwegian, Bank of England, South Africa, Turkey, Central Bank of Turkey, Philadelphia

☆ Morning Bid: Fed fireworks set nervy stage for BoE
▼ + stars: | 2023-09-21 | by ( ) www.reuters.com time to read: +2 min

Reuters GraphicsU.S. yields pushed even higher in the Asian time zone, while U.S. stock futures pointed lower. Asian shares slumped region-wide (.MIAP00000PUS) - including a 1% slide for Japan's Nikkei - while crude oil extended its retreat from a 10-month peak. But the BoE is actually the last of the European central banks to set policy on Thursday, with the SNB and Riksbank kicking things off, followed shortly by Norges Bank. This week's central bank bonanza doesn't end in Europe either. Japan's currency, though, is at the mercy of the dollar, sinking to the weakest since the start of November to 148.465 yen , increasing the risk of central bank intervention.

Persons: Kevin Buckland, Jay Powell, BoE, Kazuo Ueda, Jacqueline Wong Organizations: Federal Reserve, Bank of England, Reuters Graphics, Japan's Nikkei, Norges Bank, of, Yomiuri, Swiss National Bank, Thomson Locations: Europe

☆ Bank of England Keeps Rates Steady for First Time in Nearly Two Years
▼ + stars: | 2023-09-21 | by ( Eshe Nelson | More About Eshe Nelson | ) www.nytimes.com time to read: +2 min

The central bank began its tightening cycle in December 2021, raising rates from near zero to levels last seen during the financial crisis of 2008. The central bank has said Ben Bernanke, the former U.S. Federal Reserve chair, will lead a review into the bank’s forecasting processes. But this week, some news landed in the central bank’s favor. Better still for the central bank, measures of domestic inflationary pressures also slowed. As inflation rates drop across much of the world and economies are weakening, in part because of the aggressive policy tightening by central banks, policymakers are trying to carefully calibrate the right level of interest rates.

Persons: Ben Bernanke Organizations: U.S . Federal

☆ Unlike other central banks, Bank of Japan marches to different drummer
▼ + stars: | 2023-09-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUnlike other central banks, Bank of Japan is 'marching to a different drummer'Richard Fisher, former Dallas Fed president, says the Bank of Japan had a "unique ecosystem" where it is "very beholden to the diet".

Persons: Richard Fisher Organizations: Bank of Japan, Dallas Fed

In a development that few predicted just two days ago, the central bank kept its main interest rate unchanged at a 15-year high of 5.25%. The U.S. Federal Reserve also left rates unchanged Wednesday. While the decision to leave rates unchanged is a welcome development, it doesn't mean that Britain's cost-of-living crisis has ended. The Swiss National Bank also kept rates unchanged Thursday, but in a busy day for central bank action in Europe, Sweden's and Norway's central banks pushed ahead with quarter-point hikes. The European Central Bank, which sets interest rates for the 20 European Union countries that use the euro currency, last week hinted that its 10th straight hike could be its last.

Organizations: —, Bank of England, The U.S . Federal Reserve, Monetary, Swiss National Bank, European Central Bank, Union Locations: Ukraine, The, Russia, U.S, Britain, Europe

The European Central Bank last week lifted rates to a record 4% and upgraded its inflation forecast for 2024, but the euro fell and has lost almost 2% against the dollar this month. Overall, Europe's central banks "would like to portray this idea of higher for longer (rates)," said Ed Hutchings, head of rates at Aviva Investors. The currency, which the central bank labeled "unjustifiably weak," barely caught a break and remains near a record low against the euro . He expected one the of big European central banks to be the first to cut rates. European central banks were "in a bind," Fiotakis added, as higher oil prices also threatened to push inflation higher.

Persons: Dado Ruvic, Sterling, Kit Juckes, BoE, SocGen's Juckes, Ed Hutchings, Nathan Thooft, Bjoern, Fiotakis, Orla Garvey, Naomi Rovnick, Christina Fincher Organizations: REUTERS, Sterling, LONDON, Bank of, Swiss, greenback, Societe Generale, European Central Bank, ECB, U.S . Federal Reserve, Fed, Aviva Investors, Investment Management, Reuters, DWS Group, Nomura, ING, Barclays, Federated, Thomson Locations: Swiss, Bank of England, Switzerland, Sweden, Europe, U.S, Western Europe, United States, Britain, Swedish, Japan, European

☆ Central bank interest rates: Is the global fight to tame inflation nearly over?
▼ + stars: | 2023-09-21 | by ( Anna Cooban | ) edition.cnn.com time to read: +5 min

London CNN —Central bankers have had to climb a metaphoric mountain over the past two years in the battle to control runaway inflation. The announcement came just hours after Switzerland’s central bank kept rates unchanged and a day after the US Federal Reserve did the same, holding its key lending rate in the range of 5.25% to 5.5%. “Central banks think they have raised interest rates enough to bring inflation down to their 2% targets in a couple of years’ time,” Paul Dales, chief UK economist at Capital Economics, told CNN. Key interest rates are now at levels that, if “maintained for a sufficiently long duration, will make a substantial contribution” to reducing inflation to its 2% target, the central bank said. “By this time next year, we anticipate that 21 out of the world’s 30 major central banks will be cutting interest rates.”

Persons: ” Paul Dales, “, Jerome Powell, Sarah Silbiger, Brent, Andrew Bailey, ” Seema Shah, ”, J.P, Morgan, Jennifer McKeown Organizations: London CNN —, Bank of England, US Federal Reserve, Capital Economics, CNN, European Central Bank, ECB, Federal, Washington DC, Bloomberg, Getty, European Union, EU, European Commission, Asset Management, “ Locations: United Kingdom, United States, Germany, Saudi Arabia, Russia

Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. The Bank of Japan on Friday rounds off one of the most intense weeks in recent memory for central bank policy decisions, with global markets still reverberating from the shockwaves that have followed the Federal Reserve's 'hawkish pause' on Wednesday. MSCI's Asia ex-Japan index also had its worst day since early August, and Wall Street slumped to a three-month low. Further complicating the picture for investors, however, were the surprisingly dovish decisions from the Bank of England and Swiss National Bank. Here are key developments that could provide more direction to markets on Friday:- Bank of Japan policy meeting- Japan inflation (August)- Japan, Australia PMIs (September)By Jamie McGeever; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

Persons: Issei Kato, Jamie McGeever, Steven Major, Bond, Fumio Kishida, Australia PMIs, Josie Kao Organizations: Bank of Japan, REUTERS, The Bank of Japan, MSCI's, Treasury, Bank of England, Swiss National Bank, Reuters, Thomson Locations: Tokyo, Japan, MSCI's Asia, Asia, Malaysia, New Zealand, Australia, Germany, France, Britain

☆ Swiss National Bank holds rates unchanged, ending hike streak
▼ + stars: | 2023-09-21 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

A Swiss National Bank logo is pictured on the SNB building in Bern, Switzerland May 20, 2020. The Swiss National Bank ended its streak of five consecutive increases, keeping interest rates unchanged at its quarterly monetary policy meeting on Thursday. "The significant tightening of monetary policy over recent quarters is countering remaining inflationary pressure," the SNB said in a statement. At its previous meeting in June, the central bank opted for a 25 basis point increase, after increments of as much as 75 basis points previously. "Over the medium term, however, it should return to more moderate levels, not least due to more restrictive monetary policy," the central bank said.

Organizations: Swiss National Bank, Swiss Locations: Bern, Switzerland, Swiss, Europe

☆ Oil prices fall ahead of more central bank steers on interest rates
▼ + stars: | 2023-09-21 | by ( ) www.cnbc.com time to read: +1 min

This aerial photo shows the Enping 15-1 oil platform 200 km southwest of Shenzhen, south China, May 31, 2023. Oil prices fell in early Asian trade on Thursday after falling by the most in a month in the previous session on U.S. interest rate hike expectations, and ahead of a steer from other central banks on their rate outlooks. U.S. West Texas Intermediate crude fell 49 cents, or 0.6%, to $89.17. Federal Reserve policymakers still see the central bank's benchmark overnight interest rate peaking this year in the 5.50% to 5.75% range, just a quarter of a percentage point above the current range. Energy markets had little reaction to U.S. energy data on Wednesday showing crude inventories fell in line with expectations last week.

Persons: Brent, refiners Organizations: . West Texas, U.S . Federal Reserve, Federal Reserve, Bank of England, Energy, U.S . Energy, Administration Locations: Shenzhen, China, Indonesia, Philippines, Taiwan

ISTANBUL (AP) — Turkey’s central bank raised its key interest rate by 5 percentage points Thursday, another large but expected hike that signals a continued push toward more traditional economic policies under President Recep Tayyip Erdogan. The Turkish central bank started cutting rates in late 2021 under pressure from Erdogan. Before their appointments, the central bank had cut its key interest rate from around 19% in 2021 to 8.5% earlier this year. Erdogan has fired three central bank governors who resisted pressure to cut rates before appointing Erkan’s predecessor in 2021. Following Erkan’s appointment, the bank has raised its key rate a series fo time: by an aggressive 7.5 percentage points in August, 2.5 percentage points in July and 6.5 percentage points in June.

Persons: Recep Tayyip Erdogan, Erdogan, Merrill Lynch, Mehmet Simsek, Hafize Gaye Erkan, Erkan’s Organizations: U.S . Federal Reserve, Bank of England, U.S Locations: ISTANBUL, Turkey, Turkish, Erdogan, Central, Ukraine

STOCKHOLM (AP) — Sweden’s central bank raised its key interest rate Thursday, saying that “inflationary pressures in the Swedish economy are still too high,” although there were signs that inflation had begun to fall. Sweden has been struggling with high inflation — it was 7.5% in August, down from 9.3% in July, but far from the 2% target set by Sweden’s central bank. Thursday's interest rate increase meant that the policy rate is at the highest level since October 2008, the Swedish news agency TT wrote. Norway's central bank also raised its policy rate by a quarter-point on Thursday, to 4.25%. “Persistently high inflation imposes substantial costs on society,” Norges Bank said, adding that ”a somewhat higher interest rate is needed to bring inflation down to target within a reasonable horizon.”The moves came on a busy day of central bank action.

Persons: Ida Wolden Bache, — Organizations: STOCKHOLM, U.S ., TT, Norges Bank Gov, ”, ” Norges Bank, Bank of England, Swiss National Bank, U.S . Federal Reserve Locations: Swedish, Sweden, Ukraine, Norway

☆ No strong case for jacking up bank charges: ECB's Wunsch
▼ + stars: | 2023-09-21 | by ( ) www.reuters.com time to read: +2 min

Sept 21 (Reuters) - There are no strong arguments for the European Central Bank to increase mandatory reserves for banks, Belgian central bank chief Pierre Wunsch said on Thursday, weighing in on a key debate about a potential move to tighten policy further. The ECB cut to zero the rate it pays to banks on mandatory reserves earlier this year. Some policymakers are now pushing for an increase in the reserve requirement, in part to reduce losses associated with the multi-trillion-euro pool of excess liquidity sloshing around banks. "I don't see any strong argument for using movements in the reserve requirements when we still have this huge portfolio (of bonds) that we can reduce," Wunsch told the Reuters Global Markets Forum. But Wunsch said that reducing central bank losses should not be the objective of monetary policy and changing the rules now could make commercial banks wary of taking part in future stimulus schemes.

Persons: Pierre Wunsch, Wunsch, Banks, Divya Chowdhury, Balazs Koranyi, Jane Merriman, Chizu Organizations: European Central Bank, ECB, Reuters Global Markets, Thomson Locations: Belgian, Mumbai

☆ China's property crisis weighs on developing Asia's 2023 growth outlook - ADB
▼ + stars: | 2023-09-20 | by ( Enrico Dela Cruz | ) www.reuters.com time to read: +2 min

Updating its regional economic outlook, the ADB trimmed its 2023 growth forecast for developing Asia to 4.7%, from 4.8% projected in July. But the growth forecast for next year for the grouping, which consists of 46 economies in the Asia-Pacific and excludes Japan, Australia and New Zealand, was revised slightly upwards to 4.8% from 4.7% previously. China's property crisis "poses a downside risk and could hold back regional growth," the ADB said in its report. The Manila-based lender maintained its 2024 growth forecasts for China and India at 4.5% and 6.7% respectively. While growth has so far been robust and inflation pressures are receding in developing Asia, Park said governments need to be vigilant against the many challenges the region faces, including food security.

Persons: Thomas Peter, Albert, Park, Enrico Dela Cruz, Mikhail Flores, Kanupriya Kapoor Organizations: REUTERS, Rights, Asian Development Bank, ADB, East, Thomson Locations: Beijing, China, Rights MANILA, Asia, El, Pacific, Japan, Australia, New Zealand, East Asia, South Asia, Southeast Asia, India, Manila

REUTERS/Evelyn Hockstein/File Photo Acquire Licensing RightsSept 21 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. For Asian markets, one of the most significant consequences of the Fed's revisions is the dollar's rise, most notably against the yen. The dollar hit an 11-month high above 148 yen, which Japanese policymakers will be paying close attention to. In that light, it is worth noting that Japan's intervention on Sept. 22 last year was a day after the FOMC decision and revised forecasts. Here are key developments that could provide more direction to markets on Thursday:- Indonesia central bank meeting- Philippines central bank meeting- Bank of England policy decisionBy Jamie McGeever; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, Evelyn Hockstein, Jamie McGeever, BoE, Goldman Sachs, Josie Kao Organizations: Federal, Federal Reserve, REUTERS, Asia, Bank of England, Deutsche, Nomura, Treasury, The Bank of Japan, Bank of, Thomson, Reuters Locations: Washington , U.S, Asia, Indonesia, Philippines, Taiwan, U.S, Pacific, New Zealand, Hong Kong

WASHINGTON (AP) — The Federal Reserve is set to leave its key interest rate unchanged Wednesday as it seeks to guide the U.S. economy toward a “soft landing" of cooling inflation without triggering a deep recession. Yet with inflation pressures still underlying the economy, Powell won't be declaring victory on Wednesday, when the Fed's latest policy meeting ends. And those projections will likely also show that the Fed envisions fewer interest rate cuts next year than it did in June, when it projected three rate reductions in 2024. Even as the central bank is winding down its rate hikes, Powell and other Fed officials have said their key rate could remain at its peak well into next year. Powell and other central bank officials have said that while they are making progress, they aren't yet done.

Persons: Jerome Powell, Powell, it's Organizations: WASHINGTON, Federal, Fed, United Auto Workers, Big, European Central Bank, Bank of England, Bank of Japan Locations: U.S, Ukraine

Striking United Auto Workers members Laura Zielinski and Aisha Cochra hold their strike signs outside the Stellantis Jeep plant in Toledo, Ohio, U.S. September 19, 2023. The fledgling auto workers strike, if it lasts and broadens out, could be just that. A prolonged nationwide strike could put already-low inventory under heavy strain, posing "significant" upside risk to auto prices. The United Auto Workers strike against the 'Detroit Three' automakers General Motors, Ford and Stellantis entered its fifth day on Tuesday. Annual inflation has plummeted this year and by some measures now has, or is close to having, a "2" handle - the central bank's 2% goal is within sight.

Persons: Laura Zielinski, Aisha Cochra, Rebecca Cook, Morgan Stanley, Michael Feroli, JP Morgan, Cox, Stellantis, Morgan Stanley's Ellen Zentner, Jamie McGeever, Andrea Ricci Organizations: United Auto Workers, REUTERS, Rights, Fed, Reuters, U.S . Consumer, Bureau of Labor Statistics, General Motors, Ford, Cox Automotive, UAW, UBS, University, Thomson Locations: Toledo , Ohio, U.S, Rights ORLANDO , Florida, Detroit

Oil prices continued to push higher, with the international benchmark Brent crude price moving past $95 to its highest since November 2022. Reuters GraphicsInvestors and central bankers are contending with a sharp rise in oil prices as demand has picked up but Saudi Arabia and Russia have limited supply. Samuel Zief, head of global FX strategy at JPMorgan Private Bank, said central banks should not be overly concerned by the run-up in oil prices, which he said should fade as economies slow. "What the central banks are really, really focused on, it's not really the supply-side energy shocks anymore, it's really the sticky services part of the inflation basket," he said. "Pick whatever central bank you want, they're talking about either they're done already or they'll do one more hike and they'll go on pause."

Persons: Germany's DAX, Duncan MacInnes, Jerome Powell's, Samuel Zief, it's, Kazuo Ueda, Harry Robertson, Kevin Buckland, Lewis Jackson, Stephen Coates, Bernadette Baum, Chizu Organizations: Federal Reserve, Bank of England, Bank of Japan, Brent, FTSE, Nasdaq, Reuters Graphics Investors, . West Texas, JPMorgan Private Bank, of England, Bank of, Japan's Nikkei, Tokyo, Reuters, Thomson Locations: TOKYO, Asia, Japan, U.S, Saudi Arabia, Russia, Bank of Japan, London, Tokyo

☆ Euro gains, yen struggles in central bank-packed week
▼ + stars: | 2023-09-19 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

A Reuters report on Monday citing six sources said the debate over the multi-trillion-euro pool of excess liquidity sloshing around banks was likely to start next month. However, this might not be enough to give the euro a more sustained boost, according to Lee Hardman, a strategist at MUFG. "While the ECB’s reported plans to tighten excess liquidity in the euro area have helped to support the euro, they are unlikely to be sufficient on their own to turn the current weakening trend," he said. This week brings a raft of central bank meetings, including those of the Federal Reserve, the Bank of Japan, the Bank of England and the Swiss National Bank, among others, which kept currency volatility on the subdued side. In other currencies, sterling edged up 0.1% at $1.2398, ahead of an interest rate decision from the BoE on Thursday.

Persons: Dado Ruvic, Lee Hardman, Kazuo Ueda, Rodrigo Catril, Erik Weisman, BoE, Rae Wee, Lincoln, Peter Graff, Hugh Lawson Organizations: REUTERS, European Central Bank, Reuters, ECB, Federal Reserve, Bank of Japan, Bank of England, Swiss National Bank, National Australia Bank, NAB, U.S, Fed, MFS Investment Management, Thomson Locations: U.S

(Reuters) - U.S. stock index futures inched higher on Tuesday ahead of a Federal Reserve monetary policy meeting and as investors awaited grocery delivery app Instacart’s Nasdaq debut to assess a potential recovery in the IPO market. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 29, 2023. Arm Holdings last week had a stellar market debut, raising hopes of a bounce back in the initial public offering (IPO) market. Investors will closely monitor the Fed’s quarterly report on economic projections to gauge participating members’ longer-term policy outlook. While most of the key data releases on inflation are out, investors will keep an eye on U.S. housing data for August, due at 8:30 a.m.

Persons: Brendan McDermid, ”, Matthew Morgan, Alyssa Henry Organizations: Reuters, Federal, Nasdaq, New York Stock Exchange, REUTERS, Inc, Arm Holdings, Fed, Jupiter Asset, Traders, Dow e, Block, CVS Health Corp, ISI, Intel Locations: New York City, U.S, “

☆ OECD raises 2023 global growth outlook, cuts 2024
▼ + stars: | 2023-09-19 | by ( ) www.reuters.com time to read: +2 min

While that was an upgrade from 2.7% in the OECD's June outlook, global growth was expected to slow to 2.7% in 2024 - down from its estimate of 2.9% in June. Reuters GraphicsThe improved U.S. outlook for this year helped offset weakness in China and the euro zone, dragged down by Germany - the only major economy expected to be in recession. In June, the OECD had forecast 5.4% growth this year and 5.1% next year. The OECD cut the euro zone's growth outlook this year to just 0.6% from 0.9% in June, but forecast it would pick up next year to 1.1% - down from 1.5% in June - as Germany returned to growth. Though the growth outlook for next year would mostly be weak, the OECD said central banks should keep interest rates high until clear signs inflationary pressures have subsided.

Persons: Leigh Thomas, Christina Fincher Organizations: OECD, Organisation for Economic Development, Reuters, Thomson Locations: U.S, Paris, China, Germany

[1/2] Logos of Swiss banks Credit Suisse and UBS are seen before a news conference in Zurich Switzerland, August 30, 2023. UBS completed its takeover of Credit Suisse in June. UBS and Credit Suisse did not respond to Reuters request for comment. Spokespeople for central banks in South Korea, India, Ireland, and Saudi Arabia also did not immediately respond to Reuters request for comment. In the review document, UBS said "a single non-cooperative regulator can jeopardize the timeline of the parent bank merger and other transactions", impacting other related integration deals.

Persons: Denis Balibouse, Engen Tham, Selena Li, Sumeet Chatterjee, Stephen Coates Organizations: Credit Suisse, UBS, REUTERS, Rights, UBS Group AG, Reuters, Thomson Locations: Zurich Switzerland, Rights SHANGHAI, HONG KONG, South Korea, India, Ireland, Saudi Arabia, Swiss, Shanghai, Hong Kong

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