UK’s FTSE 250 index hits one-year low; crypto firms Gemini, Genesis and DCG sued – business live
Three crypto groups are being sued by New York for allegedly defrauding investors of $1.1bn, while financial markets remain on edge
Over in Jakarta, the central bank of Indonesia has unexpectedly raised interest rates, to support its currency in the face of rising geopolitical risks.
Bank Indonesia increased its seven-day reverse repurchase rate by 25 basis points to a fresh four-year high of 6%, surprising economists who had expected no change today.
This increase is to strengthen stabilisation measures for the rupiah against the impact of increasing global uncertainty, and as a pre-emptive and forward-looking step to mitigate its impact on inflation through imported goods."
The central bank believes that the global economy is set to face increasing headwinds with uncertainty on the uptick, and indicated that a stronger policy response" was needed given the heightened uncertainty in the financial markets. It now predicts that global growth should settle around 2.9% year-on-year in 2023 and 2.8% next year with the US Federal Reserve now set to keep rates higher for longer. Given the backdrop, BI sees capital outflow persisting for the rest of the year.
With the Rupiah down 1.77% for the month, BI had little choice but to whip out additional policy support for the currency.
President Biden has left Israel, having extracted a promise of aid for Gaza, but there are little signs of an easing in high tensions.
Other diplomatic efforts will be closely watched, with the UK's Prime Minister visiting Israel, and the foreign secretary meeting leaders in neighbouring countries, but a resolution still looks very difficult to achieve and concerns remain about the conflict potentially widening.
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