Central banks can’t expand loose monetary policy without exacerbating risks to world economies, the Bank for International Settlements said.

The euro gained against the majority of major currencies after German business confidence fell less than some economists forecast, suggesting the region’s largest economy can withstand the sovereign-debt crisis.

THE US economy expanded less than estimated in the second quarter, underscoring the weakness that has prompted the Federal Reserve to mark down its growth forecasts.

THE US central bank will maintain its holdings of securities to stop money from being drained out of the financial system, in their first attempt to bolster the economy in more than a year.