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(Reuters) - A spate of volatility in money markets has stoked speculation the Federal Reserve may be forced into a technical adjustment to the levers controlling its benchmark interest rate to ensure that it does not fall too low, but few expect the central bank to act on the matter at this week’s meeting.
FILE PHOTO: The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid
Interest rates in some short-term funding markets have dropped into negative territory on a handful of occasions recently, driven down by factors such as the Fed’s $120 billion a month of bond purchases, a surge in bank reserves and a big drop in the federal government’s cash stockpile as it doles out pandemic relief payments and tax refunds.
At least one major state-owned Chinese bank is conducting large currency swaps in mainland markets, possibly as part of efforts to cap the yuan, as domestic banks deal with a heavy influx of dollars, eight sources with knowledge of the matter told Reuters on Tuesday.
A surge in bond yields, fears about rising inflation and a jump-forward in interest rate expectations will be top of mind for investors at this week's Federal Reserve policy meeting.
By Reuters Staff
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WARSAW, March 15 (Reuters) - Poland’s central bank wants to buy at least 100 tonnes of gold worth some $5.5 billion at current prices over the coming years, as it continues to expand its bullion reserves, governor Adam Glapinski said in an interview published on Monday.
“At the moment, we have 229 tonnes of gold, of which more or less half was bought during my term in office,” Glapinski told conservative magazine Sieci.
“Over the course of a few years we want to buy at least another 100 tonnes of gold and keep it in Poland as well,” he said.
Feb exports seen at 8.73% y/y, vs Jan’s 12.24% Feb imports seen at 12.60% y/y, vs Jan’s -6.49% Feb trade surplus of $2.21 billion forecast, vs Jan’s $1.96 billion Trade data due at 0400 GMT on Monday, March 15
JAKARTA, March 12 (Reuters) - Indonesia’s trade surplus likely widened in February from a month earlier on the back of higher commodity prices, which would be a 10th straight monthly surplus for Southeast Asia’s largest economy, according to a Reuters poll on Friday.
The median forecast of 12 economists in the poll was for the resource-rich country to record a $2.21 billion trade surplus in February, up from $1.96 billion in January.