By Malvika Gurung
Investing.com -- The July 22-ended week witnessed the European Central Bank raising the key interest rate more than anticipated by 50 basis points to 0%, marking the central bank’s first rate hike in 11 years amid soaring inflation.
Here are some highlights of key financial events and developments that transpired over the week in these top emerging nations - India, China and Indonesia.
India
- Indian equity benchmark indices Nifty50 and Sensex ended the week on a higher note, rising over 4% each and extending their winning streak for the sixth consecutive session on Friday, the longest in 2022, marking the best week since Feb 2021.
- The Indian rupee plunged to a lifetime low of 80.063 against the US dollar on Thursday and snapped an 11-week losing streak on Friday, following RBI’s intervention as the domestic currency tumbled past the critical psychological level of 80/$1.
- Morgan Stanley (NYSE:MS) has cut India’s annual growth forecast in FY23 to 7.2%, only days after Nomura (TYO:8604) pared GDP growth estimates from 5.4% to 4.7%.
- RBI has suggested the Indian Government frame cryptocurrency regulations, while the latter believes that global collaboration is required for imposing any effective regulation or ban on their use in the country, revealed Finance Minister Nirmala Sitharaman.
China
- The country’s sovereign wealth fund China Investment Corp has combined the operations of CIC Capital with its main overseas investment business for boosting efficiency, following a talent exodus and the rising complexity of offshore investing.
- Governor of the People's Bank of China, Yi Gang said that the central bank would step up the implementation of its prudent monetary policy to provide increased economic support amid downward pressures from pandemic and external macros despite relatively lower domestic inflation.
- The ride-hailing company Didi Global have been slapped with a fine of over $1.2 billion by the Chinese internet watchdog on violation of the country’s multiple security laws.
- Asian Development Bank has slashed the country’s growth forecast for 2022 from an initial estimate of 5% to 4%, over concerns of strict lockdowns and a zero-Covid approach, increasing pressure on the real estate sector.
Indonesia
- Bucking the global trend, central bank Bank Indonesia kept its borrowing costs unchanged at a record low rate of 3.5% on Thursday, to support the country’s economic growth, given flat gains in domestic prices.
- Asian Development Bank in its latest outlook has upgraded Indonesia’s growth for 2022 to 5.2% from 5%, backed by robust domestic demand and exports supporting the economy.
- In attempts to boost exports and alleviate high inventories, the world’s largest palm oil producer has done away with its export levy for all palm oil products until Aug 31, assuring that the move would not hamper the government’s revenues.