Wednesday, October 20, 2010

20101020 1100 Local & Global Economics News.

Malaysia: 6.5% GDP forecast on slower exports, imports, BCI
The Malaysian Institute of Economic Research (MIER) is maintaining its GDP forecast of 6.5% this year. Its executive director, Dr Zakariah Abdul Rahid, said this was based on slower growth in imports and exports as well as the decline in business condition index (BCI) in the third-quarter of this year, which more than offset the surge in consumer sentiment index (CSI). (Malaysian Reserve)

Malaysia: To get greater access to India for palm oil, cocoa
Malaysia said it expects to conclude talks with India on a free-trade agreement next week that should see it obtain greater access for products including cocoa and palm oil as well as more stringent anti-dumping provisions. “Everything has been agreed,” International Trade & Industry Minister Mustapa Mohamed said in Kuala Lumpur. “India is a big market, growing fast.” (Bloomberg)

China: Surprises with first rate hike since 2007
China's central bank surprised with its first increase of interest rates in nearly three years, a move that reflects its concern about rising asset prices and stubborn inflation. It said it was raising benchmark rates by 25 basis points, taking one-year deposit rates to 2.5% and one-year lending rates to 5.56%. The impact was felt by global markets when oil prices fell, European stock markets turned and the dollar rose. (Bloomberg)
Japan : Cuts its economic evaluation for first time in 20 months
Japan’s government downgraded its assessment of the economy for the first time in 20 months as a rising yen and slower global demand put increasing pressure on an already slowing export-led expansion. The rebound is “pausing,” the Cabinet Office said in Tokyo, removing last month’s reference to the economy “picking up.” (Bloomberg)

UK: Some UK inflation indicators ‘extremely subdued’, King says
Bank of England Governor Mervyn King said that some gauges of UK inflation are “extremely subdued,” signaling that he may be open to stepping up bond purchases. Officials are “conscious that the continuing high level of inflation poses the risk that inflation expectations may move up,” King said in England. "Still, the danger that slack in the economy will push price-growth below the bank’s target is “at least as large.” (Bloomberg)

UK: More BOE stimulus may be ‘misplaced’, Barker says
The Bank of England risks stoking inflation with little benefit to economic growth if it expands its so-called quantitative easing program of stimulus, former policy maker Kate Barker said. “If rising inflation expectations have followed the use of QE, there is a risk that relying on monetary policy to ride to the rescue of faltering growth might be misplaced,” she said. "More stimulus could “have more of an impact on inflation than on growth if it feeds through into higher inflation expectations.” (Bloomberg)

US: Housing starts unexpectedly rise to five-month high
Builders in the US unexpectedly began work on more homes in September, a sign the real estate market was stabilizing at depressed levels heading into the recent upheaval in the foreclosure crisis. Housing starts rose to a 610,000 annual rate, the most since April and up 0.3% from a revised 608,000 rate in August that was higher than previously estimated, Commerce Department figures showed in Washington. (Bloomberg)

No comments: