The discussion of financial markets opened with members observing that the marked increase in financial market volatility over the past month had mainly been a response to concerns about the resilience of the global economy, stemming primarily from developments in China. Much of the volatility had occurred in equity markets, with fixed income and foreign exchange markets generally exhibiting less volatility. Members discussed the implications of the changes in mid August to the manner in which the People's Bank of China (PBC) set the daily fixing rate for the renminbi (RMB) against the US dollar, which had resulted ... (full story)