LONDON (MNI) - UK output rose 0.7% in the three months through August, the National Institute of Economic and Social Research said today.

NIESR said that the estimates for August showed growth has slowed and will decelerate further still over the coming months. The institute left intact its view that the Bank of England would leave Bank Rate unchanged until the summer of 2011.

BRUSSELS (MNI) - Irish bond spreads Wednesday hit their widest level since the start of European Monetary Union as traders speculated that the country won't be able to manage its large budget deficit, exacerbated by the expensive problems of its troubled banking system.

The Irish government is meeting on Wednesday to debate the future of Anglo Irish Bank after saying on Tuesday that it would keep the bank on state funded life-support until the end of the year.

Source: Federal Reserve Bank Economic activity of approximately six weeks prior to release.

Release Data Date Thru District President

Release Data Date Thru District President

28-Jul-10 19-Jul-10 St. Louis James Bullard

FRANKFURT (MNI) - The Basel Committee has reached a compromise on new capital ratio requirements that should result in higher capital needs, capital increases and retained earnings, Bundesbank Vice-President Franz-Christoph Zeitler said on Wednesday.

"The Committee yesterday prepared key points for an agreement that will offer the basis for consultation and a decision Sunday among central bank governors and heads of supervision," Zeitler said during a press briefing in the Bundesbank.

BERLIN (MNI) - The global financial crisis is not yet over and setbacks in financial markets cannot be ruled out, ECB Governing Council member Axel Weber said in remarks prepared for delivery on Wednesday.

"Even though financial markets have calmed again they are still marked by heightened uncertainties and are not immune to setbacks," Weber, who heads Germany's Bundesbank, reasoned.

BEIJING (MNI) - The People's Bank of China announced that it will sell CNY17 billion in three month bills on Thursday as part of its open market operations.

The PBOC will also sell CNY100 billion in three-year note on Thursday.

People's Bank of China open market operations:

For Week 3M 3M 1Y 1Y 3Y 3Y Net Starting: volume yield volume yield volume coupon Position CNY bln pct CNY bln pct CNY bln pct CNY bln

LONDON (MNI) - The Bank of England said Wednesday it received no bids at its latest 7-day unlimited dollar repo operation.

The dollar repo operations were reintroduced by the Bank of England as part of a co-ordinated move by G7 central banks to inject dollar funds into the money markets if needed.

FRANKFURT (MNI) - The European Central Bank said Wednesday that it has allotted $60 million in its 7-day USD liquidity providing operation.

The central bank said it received 1 bids. The minimum bid amount is $5 million.

The operation was carried out at a fixed rate of 1.18%. The Euro/USD rate was set at 1.2727.