Banking

The Bank of Canada held its target overnight rate steady at 2.25% on June 10, 2026, marking its fifth consecutive meeting without a change, as Governor Tiff Macklem cited the need to balance energy-driven inflation — pushed higher by the ongoing Middle East conflict — against economic weakness stemming from US trade policy uncertainty. Canadian inflation rose to 2.8% in April 2026, with the central bank projecting it will peak near 3% before gradually declining to its 2% target by early 2027.

A stress scenario analysis by the European Central Bank has found that European insurers would suffer larger absolute losses from a private credit shock than European banks, due to their larger and less senior exposures to private lending markets. European insurers hold approximately 11% of their general account investments in private credit and private equity on average, with total private asset exposure reaching 27% when mortgages, securitised products, and real estate are included. The findings come as the Iran conflict and rising energy prices are already testing European insurer balance sheets.

Reserve Bank of India Governor Sanjay Malhotra has told global financial institutions and investors at a New York roundtable that India's foreign exchange reserves of approximately $700 billion reflect underlying macroeconomic resilience, even as short-term fluctuations in capital flows are closely monitored. The messaging accompanied a broader showcase of India's regulatory simplifications and market access improvements, including the recently enacted 100% FDI in insurance and ongoing IDBI Bank privatisation process.

India's long-running attempt to privatise IDBI Bank has hit another roadblock after bids from Fairfax Financial Holdings and Emirates NBD reportedly fell below the government's reserve price. Officials are now examining legal provisions that could allow the government to accept lower bids, while Finance Minister Nirmala Sitharaman has reiterated the government's commitment to the divestment, which involves the sale of a combined 60.7% stake held by the government and LIC.