Friday, July 16, 2010

20100716 0945 Global Economic News.

Malaysia: MIER ups growth forecast to 6.5%
The Malaysian Institute of Economic Research (Mier) has revised upwards its 2010 GDP growth forecast to 6.5% from 5.2% previously, given a stronger-than-expected 1Q GDP growth along with strengthening domestic demand and stabilizing conditions. Executive director Dr Zakariah Abdul Rashid, however, said the growth was expected to taper off in the second half of this year due to further policy-tightening measures and disappearing low base effects. (StarBiz)

Japan: BOJ predicts growth to slow in 2011, keeps 0.1% rate
The Bank of Japan kept interest rates unchanged and predicted growth in the world’s second- largest economy will slow next year as fiscal stimulus evaporates worldwide and overseas demand loses steam. Policy makers raised their growth forecast for the year ending March 2011 to 2.6% from 1.8% estimated in April, while cutting next year’s to 1.9% from 2%, the central bank said. The board held the benchmark overnight lending rate at 0.1%. (Bloomberg)

China: Economic growth eases to 10.3% on credit curbs
China’s economic expansion eased to 10.3% in the 2Q and industrial production cooled more than forecast in June, signaling a deeper second- half slowdown that may add to risks for the global economy. The gain in GDP was less than an 11.9% increase in January-March from a year earlier. Inflation cooled to 2.9% in June, the statistics bureau reported. Industrial output rose 13.7%, less than all but one of 27 forecasts in a Bloomberg News survey. (Bloomberg)

Chile: Raises rate to 1.5% as growth threatens prices
Chile’s central bank raised its benchmark interest rate for the second straight month after the fastest economic growth in almost five years pushes inflation back up toward policy makers’ target. The five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a half point to 1.5% from 1%, matching the forecasts of all but one of the 16 economists surveyed by Bloomberg. (Bloomberg)

US: Industrial production in US increased 0.1% in June
Industrial production in the US unexpectedly rose in June as higher temperatures across the nation led to increased utility use. Factory output, which makes up 75% of the total, declined the most in a year. Production at factories, mines and utilities increased 0.1% after a 1.3% gain in May, figures from the Federal Reserve showed. Economists had forecast a 0.1% drop in June, according to the median estimate in a Bloomberg News survey. Utility output rose 2.7%, while production at manufacturers declined 0.4%. Producer prices slid 0.5% after a 0.3% decline the month before, the Labor Department said. (Bloomberg)

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