Week in review: pumping money
Want to know why a big UK bank is winning this week, how India steadied the markets and why you shouldn’t panic about the US economy – yet. Our guide to this week’s biggest business stories will provide the answers.
For markets: boosting the systemThe US central bank has pumped more than $200bn into the financial system this week, bringing back memories from 2008. The federal reserve’s aim was to stabilise interest rates in what is known as the “repo market” – where banks and hedge funds swap bonds for cash – which suddenly rose to 10% from a normal 2-2.5%. Strain in the repo markets has brought back alarming memories of 2008, when a similar issue was one of the first signs of trouble ahead of the financial crisis. But it’s not yet time to panic about the state…