20100903 1016 Local & Global Economic News.

Malaysia: Refrains from raising interest rate as rebound cools
Malaysia’s central bank left interest rates unchanged after three consecutive increases, choosing to support growth as the global recovery slows. Bank Negara Malaysia kept its benchmark overnight policy rate at 2.75%, it said in a statement in Kuala Lumpur, a decision that was predicted by 15 of the 17 economists surveyed by Bloomberg News. The other two expected a quarter-point increase. (Bloomberg)

Malaysia: Exports data show more sustainable growth rate
Malaysia’s export declined for a fourth month in July, with the latest data from the Statistics Department released showing exports grew 13.5% to RM55.43bn from a year ago. Imports expanded by 18.1% to RM48.41bn from a year ago while on a month-on-month basis, July exports rose 4.9% and imports were up 3.5%. (StarBiz)

Japan: BOJ may forego further stimulus until October forecast review
The Bank of Japan may seek to delay implementing further monetary easing until at least October, waiting to see whether the yen’s gains and a US slowdown will force it to abandon a forecast for a sustained recovery. Governor Masaaki Shirakawa and his board will probably forego fresh liquidity injections at a two-day meeting ending 7 Sept, according to all but one of 15 economists surveyed by Bloomberg News. All 15 economists predicted that the board will keep the benchmark overnight lending rate at 0.1%, where it’s been since December 2008. (Bloomberg)

Australia: Trade surplus narrows as exports cool
Australia’s trade surplus almost halved in July as exports of coal and iron ore came off the boil while imports were lifted by defense spending, suggesting trade will be less of a boost to economic growth this quarter. The surplus of goods and services narrowed to AUD1.89bn in July from a record AUD3.44bn in June, to be well below market forecasts of AUD3.1bn. (Financial Daily)

EU: ECB keeps key interest rate at 1%, may maintain crisis mode
The European Central Bank kept interest rates at a record low and President Jean-Claude Trichet may signal the bank will stay in crisis mode into next year. The ECB’s Governing Council set the benchmark lending rate at 1% for a 17th month, as predicted by all 57 economists in a Bloomberg News survey. Policy makers are also likely to extend emergency lending measures for banks into 2011 as the risk of a renewed US recession threatens the euro region’s economic rebound, economists said. (Bloomberg)

US: Pending home sales unexpectedly rise
Pending sales of existing houses unexpectedly climbed in July from a record low, indicating the real-estate market is steadying following the end of a government tax credit. The index of purchase contracts rose 5.2% after a revised 2.8% drop the prior month, figures from the National Association of Realtors showed in Washington. (Bloomberg)

U.S: Orders to factories rose less than forecast in July . The 0.1% MoM increase in bookings followed a revised 0.6% MoM decline in June. Orders for machinery and computers dropped. (Source: Bloomberg)

E.U: Trichet says ECB to extend emergency bank lending . European Central Bank President Jean-Claude Trichet extended emergency lending measures for banks into 2011, remaining in crisis mode as the risk of a renewed U.S. recession puts the euro-area's rebound in jeopardy. The ECB will keep offering banks unlimited one week and one month loans until at least Jan. 18, Trichet told reporters in Frankfurt. The ECB will also offer banks three month loans in October, November and December at interest rates linked to the ECB's average benchmark rate over the maturity of the loan. (Source: Bloomberg)

U.K: House prices fell the most in six months in August as increased supply of property gave buyers more bargaining power, Nationwide Building Society said. The average cost of a home dropped 0.9% MoM from July, when they fell 0.5% MoM, to GBP166,507 (USD257,519). From a year earlier, prices increased 3.9% YoY, the weakest pace since November. (Source: Bloomberg)

Spain: Sold EUR3.3b (USD4.2b) of five year bonds as its borrowing costs dropped amid receding concern over the nation's ability to rein in the euro region's third largest budget deficit. Spain sold the debt at an average yield of 2.964%, compared with a yield of 3.657% at an auction on July 1, the Treasury said. Demand was 1.63 times the amount sold, compared with the bid to cover ratio of 1.7 times in July. (Source: Bloomberg)

France: 2Q10 jobless rate unexpectedly fell for the first time in two years as companies began hiring again after the worst recession since World War II. The jobless rate dropped to 9.7% from 9.9% in the three months through March. (Source: Bloomberg)