Thailand: Avoids rate increase, easing baht pressure
Thailand refrained from a third straight increase in its benchmark interest rate as Asia’s policy makers seek to stem currency gains and shield their economies from a slowdown in global growth that may hurt exports. The Bank of Thailand kept the one-day bond repurchase rate at 1.75% after raising it in July and August. (Bloomberg)
China: Faces ‘trade conflict’ as G-20 meeting looms, Krugman Says
Nobel Prize-winning economist Paul Krugman said China is headed for a “trade conflict” with the US and other western countries as tensions rise about how to rebalance the global economy. “What China is doing is functionally equivalent to having large export subsidies and large import tariffs,” he said. “If it were doing that in the normal way, it would automatically be subject to large countervailing duties." (Bloomberg)
UK: Osborne to slash jobs, tax banks in budget cuts
Chancellor of the Exchequer George Osborne detailed the deepest budget cuts ever in Britain, eliminating almost 500,000 public-sector jobs and imposing a levy on banks to extract the “maximum sustainable” revenue. “Today’s the day when Britain steps back from the brink,” Osborne said as he outlined plans to virtually eliminate a 156 billion-pound (USD245bn) budget deficit. “It’s a day of rebuilding when we set out a four-year plan to put our public services and welfare state on a sustainable footing.” (Bloomberg)
Global: G-20 must progress on currencies, US treasury says
Currencies and trade flows will be at the center of talks as Group of 20 finance ministers try to resolve differences over exchange-rate policies, a US Treasury Department official said. Some emerging-market nations are resisting market forces and keeping their currencies undervalued, creating a competitive dynamic, the official said, speaking on condition of anonymity. The US wants foreign-exchange rates to reflect market forces and economic fundamentals. (Bloomberg)
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