By Reuters Staff
2 Min Read
FILE PHOTO: A man walks past the Central Bank building, in Beirut, Lebanon November 12, 2020. Picture taken November 12, 2020. REUTERS/Mohamed Azakir/ File Photo/File Photo
BEIRUT (Reuters) -Lebanon’s Central Bank urged the caretaker government on Wednesday to approve a plan to ration subsidies to target people in the most need, as the country struggles with a deepening economic crisis.
The bank reiterated that it would not use mandatory reserves to fund subsidies, which currently cost around $6 billion a year. Lebanon’s hard currency reserves have slumped from over $30 billion in late 2019 to just over $15 billion in March.
The Italian economy will grow by close to 5% this year, the Bank of Italy said on Friday, raising a previous forecast due to the improving coronavirus situation and an upward revision to first quarter gross domestic product data.
The Bank of Canada said on Thursday that inflation could remain higher than projected if supply imbalances and pressures on capacity persist, which might lead it to reduce stimulus more quickly than currently expected.
The Bank of Israel held its benchmark interest rate at 0.1% for a ninth straight policy meeting on Monday, citing low but rising inflation and a rapid economic recovery following a quick COVID-19 vaccine rollout.