20121205 0951 Local & Global Economy Related News.

Malaysia: MIER raises 2012 GDP forecast to 5.1%
Leading think-tank Malaysian Institute of Economic Research (MIER) has revised upwards its growth forecast for Malaysia this year to 5.1% from 4.9%. It is also optimistic about next year's growth and has revised its outlook from 5.4% to 5.6%. (BT)

Australia: RBA cuts key rate to match half-century low as currency holds up
The Reserve Bank of Australia cut its benchmark interest rate to the half-century low set during the 2009 global recession as hiring falters and an elevated currency hurts industries such as manufacturing and tourism. Governor Glenn Stevens and his board reduced the overnight cash-rate target by a quarter percentage point to 3%, the central bank said. The sixth cut in the past 14 months was predicted by 20 of 28 economists surveyed by Bloomberg. (Bloomberg)

UK: Osborne urged to boost growth as BCC cuts UK outlook
Britain’s recovery will be slower than previously forecast and the economy needs more support from the government through a program of business investment, according to the British Chambers of Commerce. The BCC cut its 2013 growth forecast to 1% from 1.2% in September and its 2014 projection to 1.8% from 2.2%, the London-based group said, citing a weaker global backdrop and the likelihood of further fiscal tightening by the government. (Bloomberg)

EU: Finance chiefs confident of Greek buyback to succeed
European finance ministers voiced confidence that Greece will pull off a successful bond buyback, the key element in a revamped effort to stem the debt crisis in the country where it started. Greece began the EUR10bn (USD13bn) repurchase of bonds maturing from 2023 to 2042, offering a higher-than-planned price in order to increase demand for the debt-reduction measure. (Bloomberg)

EU: Euro zone factory prices nearly flatline in October
Euro zone factory prices barely rose in October, echoing the slowing pace in consumer inflation, although the European Central Bank is expected to wait a little longer before cutting interest rates to help the slumping economy. Prices at factory gates in the 17 countries using the euro rose 0.1% in October from September, the EU's statistics office Eurostat said, just above the 0.0% level expected by economists polled by Reuters. (StarBiz)