20100830 1010 Global Economic News.

India: Economy probably expanded at fastest pace since 2007
India’s economy probably grew at the fastest pace in 2 1/2 years, adding pressure on the central bank to raise interest rates even as the global recovery falters. GDP rose 8.8% in the three months ended 30 June from a year earlier, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)

Japan: BOJ holds emergency meeting as yen threatens growth
The Bank of Japan will hold an emergency board meeting today as the yen’s surge to 15-year high forces policy makers to find ways to support the nation’s slowing expansion. The yen slipped after the announcement backed speculation the BOJ will step up injections of liquidity to sustain a weakening recovery. The bank’s meeting follows signs that its US counterpart is also open to further monetary stimulus, with Federal Reserve Chairman Ben S. Bernanke saying three days ago that he has the tools to prevent another recession.(Bloomberg)

South Korea: Ease lending rules, extend home buyer tax breaks
South Korea will ease mortgage lending rules and extend tax breaks to encourage buyers back to the property market after home sales slumped to the lowest level in almost a year and a half. Banks will be allowed to ease restrictions on mortgage loans for first-home buyers and owners of one residence until the end of March. The waiver for taxes on home sales will be extended by two years until the end of 2012, the government said. (Bloomberg)

EU: Prods China for faster yuan rise
The European Union thinks China has made only limited progress in allowing its yuan currency to move more rapidly, and swifter action would help safeguard a fragile economic recovery, according to draft G-20 document. China announced in June that it would loosen its grip on the tightly managed yuan, which the US and Europe say Beijing keeps artificially low to support exports. (Financial Daily)

UK: Economy grows most since 2001 on construction
The UK economy expanded faster than previously estimated in the second quarter in the biggest growth spurt since 2001 as companies rebuilt stocks and construction work surged. GDP rose 1.2% from the previous three months, the Office for National Statistics said in London. That was higher than the 1.1% initial estimate, which was the median forecast of 25 economists in a Bloomberg News survey. On the year, the economy expanded 1.7%. (Bloomberg)

US: 2-year yields rise most since April after Bernanke speech
Treasuries dropped, pushing two-year note yields up the most since April, after remarks from Federal Reserve Chairman Ben S. Bernanke tempered speculation that the central bank will step up debt buying. The yield on 10- year notes increased this week for the first time in five weeks as Bernanke said at a conference in Wyoming that the central bank will provide additional economic stimulus as needed. (Bloomberg)