EU - ECB keeps rate at 1% as crisis tests monetary policy

The European Central Bank kept interest rates at a record low as the sovereign debt crisis widens economic divergences within the euro area, straining the bank's one-size-fits all monetary policy. The ECB's Governing Council set the benchmark rate at 1% for the 21st month, as predicted by all 53 economists in a Bloomberg News survey. (Bloomberg)

China - Inflation may ease pressure on yuan at Hu-Obama summit

Rising inflation in China that is causing headaches for President Hu Jintao at home may help relieve tensions with the US over the yuan as he prepares to meet President Barack Obama in Washington next week. Prices are climbing faster in China than in the US, making Chinese goods less competitive, Treasury Secretary Timothy F. Geithner said. Chinese officials may also seek to speed up gains in the currency, also known as the renminbi, to fight inflation, lowering the cost of imported US goods such as Boeing Co. aircraft and Microsoft Corp. software. (Bloomberg)

India - To Import onions from Pakistan as inflation set to climb

India will import 1,000 tonnes of onions and kept a ban on export of edible oils and lentils to cool prices, ahead of a report that may show inflation accelerated last month. The benchmark wholesale-price index probably gained 8.4% in December 2010, the median forecast of 30 economists in a Bloomberg News survey showed. The gauge rose 7.48% the previous month. (Bloomberg)