Wednesday, December 22, 2010

20101222 0937 Global Economics Related News.

Hong Kong: Inflation rate climbed to 2.9% in November
Hong Kong’s inflation rate accelerated to the highest level in three months in November on rising private-sector rents and food costs. Consumer prices rose 2.9 percent from a year earlier, compared with 2.6 % in October, the government said on its website today. The reading matched the median estimate of 10 economists in a Bloomberg News survey. (Bloomberg)

Japan: Bank of Japan pledges to steadily buy more assets
The Bank of Japan said it will “steadily” provide liquidity to support demand and Governor Masaaki Shirakawa warned about the risks a climb in bond yields posed to the nation’s expansion. “Volatile long-term rates can affect the economy, prices and financial conditions by influencing borrowing costs for households and companies,” Shirakawa told reporters in Tokyo today after the central bank left its credit programs unchanged and kept the key interest rate between zero and 0.1 %.(Bloomberg)

U.K : Budget gap swells to record as spending jumps
Britain’s budget deficit swelled to a record in November, underscoring the challenge facing Prime Minister David Cameron as his government prepares to implement the deepest spending cuts since World War II. Net borrowing was GBP22.8 billion (USD35.4 billion), compared with GBP16.7 billion a year earlier, the Office for National Statistics said in London. That exceeded the GBP16.8 billion median forecast of the 12 economists in a Bloomberg survey. (Bloomberg)

US: Fed extends swap lines with ECB, other central banks
The Federal Reserve authorized the extension through 1 Aug of its temporary dollar liquidity swap arrangements with the European Central Bank and the central banks of Japan, Canada, Switzerland and the United Kingdom. The arrangements had been authorized through January, the Fed said today in a statement. Fed officials voted in May to restart the emergency currency-swap tool to keep Europe’s sovereign-debt crisis from spreading to US markets. (Bloomberg)

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