Tuesday, November 15, 2011

20111115 1018 Global Economic Related News.

India: Inflation exceeds 9% for 11th month, reducing scope for rate pause
India’s inflation exceeded 9% for an 11th straight month, crimping the central bank’s scope to keep interest rates unchanged and shield the economy from a faltering global recovery. The benchmark wholesale-price index rose 9.73% in October from a year earlier, the commerce ministry said in a statement in New Delhi today. That compares with a 9.72% jump in September and the median forecast of 9.65% in a Bloomberg News survey of 19 economists. Asian nations from Indonesia to South Korea are either cutting rates or keeping them on hold to protect expansion as Europe’s debt crisis threatens to trigger a global slump. India’s central bank last month signaled it’s nearing the end of monetary tightening, provided inflation slows, after it raised rates for the 13th time since mid-March 2010. (Bloomberg)

Japan: Economy expands at 6% pace as exports drive post-earthquake recovery
Japan’s economy expanded for the first time in four quarters as exports recovered from a record earthquake, an expansion that is already slowing because of weakening overseas demand. Gross domestic product grew at an annualized 6% in the three months ending 30 Sept, the fastest pace in 1 1/2-years, the Cabinet Office said today in Tokyo. At JPY543trn (USD7trn), economic output was back to levels seen before the 11 March earthquake. A sustained rebound will depend on how much reconstruction demand can offset a slowdown in global growth as Europe’s debt crisis damps global confidence and an appreciating yen erodes profits. (Bloomberg)

Russia: Growth accelerated in third quarter for first time since last year
Russia’s economic growth accelerated in the third quarter for the first time since last year as companies stepped up investment and bank lending buoyed consumer spending. Gross domestic product expanded 4.8% from a year earlier, the fastest pace since the second quarter of 2010, after increasing 3.4% in the previous three months, the Federal Statistics Service said in an e-mailed statement today. The median estimate in a Bloomberg survey of 14 economists was 5%. The Economy Ministry estimated it at 5.1%. The world’s largest energy exporter is counting on domestic consumption to balance shrinking demand abroad as Europe fights to staunch a debt crisis. (Bloomberg)

Argentina: Cuts reserve requirements after deposits tumble by USD645m
Argentina’s central bank cut dollar reserve requirements after bank deposits plunged USD645m last week following the government’s moves to restrict foreign exchange purchases in South America’s second-biggest economy. Argentine banks will be required to hold just 20% of their dollar deposits at the central bank as reserves, Banco Central de la Republica Argentina said in a 11 Nov statement. Banks previously had to keep all dollar savings not being used to finance exporters at the central bank. President Cristina Fernandez de Kirchner’s efforts to slow capital flight since her 23 Oct re-election by ramping up oversight of foreign exchange purchases, ordering energy and mining companies to repatriate export revenue and telling insurance companies to bring investments back to the country sent investors to banks to withdraw dollars. (Bloomberg)

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