INFLATION

China took its strongest step toward tightening monetary policy on Tuesday as the world's third-largest economy roars ahead, surprising investors with an increase in banks' required reserves that rocked global financial markets.

New home prices rose 0.4 percent in November for the fifth consecutive monthly gain, Statistics Canada said on Tuesday, adding to growing evidence that the housing market is leading Canada's economic recovery.

Chinese bank lending surged in the first week of 2010, industry sources said on Monday, adding to the concerns fueled by blockbuster trade data for December that the world's third-largest economy is overheating.

Chinese bank lending surged in the first week of 2010, a state newspaper reported on Monday, adding to the concerns fueled by blockbuster trade data for December that the world's third-largest economy is overheating.

A senior Federal Reserve official said the pace of job loss had slowed even though unemployment remains high and the challenge for policy makers will be to adjust extensive securities purchases.

The U.S. dollar fell on Monday, extending losses after posting its biggest loss in six weeks after U.S. jobs data disappointed, while the Australian dollar soared on the back of strong export numbers from China.

China vowed on Sunday not to let foreign speculative investment affect the property market, the latest expression of official concern that real-estate prices are racing ahead too fast.

U.S. home loan rates could rise by as much as three-quarters of a percentage point in the spring as the Federal Reserve ends its mortgage bonds purchase program, a top Fed policymaker said in an interview published on Saturday.

Two Federal Reserve officials said on Friday they would like to see the U.S. jobs picture improve before the central bank withdraws its extraordinary support for the economy and markets.

U.S. employers cut 85,000 jobs in December, confounding expectations the labor market was finally stabilizing and piling pressure on President Barack Obama to spur job growth.

The U.S. economy is on much better footing despite a soft labor market and a rickety commercial real estate sector, Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday.

The U.S. unemployment rate will likely decline only gradually, giving the Federal Reserve room to keep interest rates low until the economic recovery becomes self-sustaining, a top Federal Reserve policymaker said on Friday.

U.S. employers unexpectedly cut 85,000 jobs in December, cooling optimism on the labor market's recovery and keeping pressure on President Barack Obama to find ways to spur job growth.

It would be good to see more improvement in the U.S. job market before exiting some stimulus programs, a top U.S. Federal Reserve official said on Friday.

Global stocks advanced on Friday, anticipating an improvement in all-important U.S. monthly jobs data, while the dollar fell from a four-month high against the yen after Japan's new finance minister backed off his call for a weaker currency. Crude oil prices dipped, extending losses the previous day on worries about tighter Chinese monetary policy. Safe-haven government bonds were mostly steady. ...

Japanese stocks hit a 15-month high on Friday as the yen eased against the dollar, leading most Asian markets higher, but Chinese shares and commodities stumbled on fears that Beijing is ready to tighten policy to cool economic growth.

Japanese stocks hit a 15-month high on Friday as the yen eased against the dollar, leading Asian shares higher, while gold and oil prices fell amid lingering concerns over possible central bank policy tightening in China.

Senior U.S. Federal Reserve officials placed different emphasis on inflation risks on Thursday, with one warning failure to withdraw support policies soon enough could trigger inflation while another played down such risks.

The Federal Reserve should tighten policy sooner rather than later to contain longer-term inflation pressures and avoid sowing the seeds of the next crisis, a top Federal Reserve policy-maker said on Thursday.

The Federal Reserve should not wait too long to exit its extraordinary support for financial markets or risk sowing the seeds of the next crisis, a top Federal Reserve policy-maker said on Thursday.

The Bank of England kept the scale of its asset purchase programme unchanged at 200 billion pounds ($319 billion) on Thursday and said it would decide whether or not to extend it next month.