Malaysia: Retains interest rate amid slow global recovery
Malaysia's central bank decided to retain the benchmark overnight policy rate at 3% for a sixth consecutive rate-setting meeting, citing weakness in global economy. The last policy change was in May when the rate was hiked by 25bps to the current level. (RTTNews)
China: Announces surprise rate cuts amid economic downshift
China's central bank announced surprise cuts in the benchmark interest rates for the second time this year as the world's second largest economy is expected to slow further in the second quarter. The People's Bank of China said it will reduce the benchmark interest rate for one-year deposits by 25bps and that for one-year lending by 31bps. The move came less than a month after the previous rate cuts announced on 7 June, when the benchmark rates were slashed by 25bps in their first cuts since December 2008. (XinHua.net)
Japan: BOJ raises assessment for all 9 regions
The Bank of Japan raised its assessment for all of Japan's nine regional economies in a quarterly report as robust private consumption and spending for rebuilding from last year's earthquake and tsunami underpinned growth. It was the first time since Oct 2009 that the central bank had raised its assessment for all nine regions. (Reuters)
UK: BOE restarts QE as euro crisis threatens to prolong slump
The Bank of England restarted bond purchases two months after halting its expansion of stimulus as the deteriorating outlook spurred policy makers to ramp up efforts to kick start a recovery. The Monetary Policy Committee led by Governor Mervyn King raised its asset-purchase target by GBP50bn (USD78bn) to GBP375bn and said the purchases will take four months to complete. Separately, the European Central Bank cut its key interest rate below 1% for the first time and China lowered benchmark rates for the second time in a month. (Bloomberg)
Germany: Factory orders unexpectedly rose on euro-area demand
German factory orders unexpectedly rebounded in May, driven by demand from the euro region. Orders, adjusted for seasonal swings and inflation, rose 0.6% from April, when they declined a revised 1.4%. Economists forecast orders would hold steady in May, according to the median of 36 estimates in a Bloomberg News survey. From a year earlier, orders fell 5.4% when adjusted for work days. (Bloomberg)
EU: ECB cuts rates to new low, no move on bolder measures
The ECB cut interest rates to a record low to breathe life into a deteriorating euro zone economy but steered clear of more dramatic measures such as buying government bonds or flooding banks with fresh liquidity. The quarter-point cut in its main refinancing rate to 0.75% was in line with market expectations. (Reuters)
US: Fewer Americans than forecast file unemployment claims
Fewer Americans filed first-time claims for unemployment insurance payments and companies added more workers than forecast, easing concern the labor market is faltering further. Applications for jobless benefits fell 14,000 in the week ended 30 June to 374,000. (Bloomberg)
US: Service sector weakest since January 2010
In another signal of a slowing US economy, the services sector grew at its slowest pace since January 2010, according to an index released Thursday. The Institute for Supply Management said its services index dropped to a reading of 52.1% in June from 53.7% in May. (MarketWatch)
US: Private sector payrolls pick up in June
Private sector payrolls picked up in June, suggesting that the nation’s unemployment may have declined, according to a report released by payrolls processor Automatic Data Processing (ADP). According to its data, private sector payrolls rose 176,000 in June, led by small businesses and the service-providing sector. Economists had expected an increase of 100,000. The May level was revised to a gain of 136,000 from a prior estimate of 133,000. (MarketWatch)
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