South Korea's central bank on Friday raised its policy rate by a quarter point after holding it steady for the past two months, going against market expectations for no change and despite signs of a slowing economy and risks from the euro zone.
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The European Central Bank has kept interest rates on hold at 1.25 percent, and the markets are now waiting for the signal that it will continue with its monetary policy normalization in July, if president Jean-Claude Trichet says that the bank will remain "strongly vigilant" on inflation.
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The European Central Bank looks set to keep its benchmark interest rate stable at 1.25 percent at its June 9 meeting, analysts told CNBC.com. Policymakers will remain "strongly vigilant" on inflation and global growth concerns, meaning that a rate rise in July looks likely.
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China should raise interest rates further to help rein in the property market, a top Chinese banker said in comments published on Tuesday, amid talk of an imminent rate rise.
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China needs to stay focused on taming inflation and raise interest rates by another 50 basis points even though its economy is slowing, the Organization for Economic Co-operation and Development (OECD) said on Wednesday.*
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Interest rates are heading lower, counter to what many in the bond market thought might happen as the Fed reaches the end of its quantitative easing program.
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