TODAY’S TOP ARTICLES – 28 APR 2014

China: PBOC Official Says China Must Move Cautiously in Cutting Leverage Ratio
As the BBC Reports, China must act cautiously in cutting leverage ratios in the corporate and government sectors, as any abrupt move could deal a blow to an economy that is already slowing, a senior central bank official said in remarks published on Monday.

Sweden: Swedish Riksbank Won’t Tolerate More Price Shocks, Jochnick Says
Kerstin af Jochnick, First Deputy Governor of Swededn’s Riskbank, stated in an interview that the “tolerance for even lower inflation data is pretty small.” In its last policy meeting the Swedish Central Bank signalled that a rate cut is a possibility to ward of deflation.

Eurozone: Draghi Awaits Pivotal Price Data That Could Spur Action
Bloomberg reports that the inflation figures for the eurozone, which will come out on 30 April, will decide the next radical policy of Mario Draghi. A weak inflation rate will probably see the ECB impose negative interest rate for the first time in history, or conduct quantitative easing.

Germany: German Banks Will Pay EUR 1.9 Billion Per Year Into New Bank Restructuring Fund
According to Reuters, German banks will pay approximately EUR 1.9 billion per year into a new EUR 55 billion European bank restructuring fund. The newly envisaged annual payment is more than three times as large as the amount currenly paid. The contribution of German banks to this fund will increase as a rule that determined that banks did not have to pay more than 20% of their annual profits has been dropped.

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