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Oil worry about China Oil Demand Outlook

Monday, November 3rd, 2014

Oil recorded a weakening slightly after increasing signal a slowing Chinese economy kept investors worried about the outlook for consumer demand largest oil No. 2 in the world. Beijing has released data on the manufacturing sector and the index of non-manufacturing reiterated the threat of a slowing Chinese economy. Data at the weekend showed China's manufacturing sector activity decreased from the level of 51.1 into 50.8 for October. The data this morning showed activity Chinese non-manufacturing sector decreased from 54.0 into 53.8 level for the month of October. Nymex Oil is now trading at $ 80.12; try to stay away from the high level of daily $ 80.61

Investors also remained concerned with melimpahny oil supply is in the market, especially with non-OPEC sinyalkan desire to cut production. Secretary General of OPEC oil output has been pointed out to 2015 probably will not change from the 2014 survey showed Bloomberg last OPEC oil production increase of 53,000 barrels to 30.974 million barrels. Meanwhile, Reuters reported Iraqi informants have managed to recover the oil exports from Basra refinery to 2.4 million barrels per day after weather disruptions cut exports to 1.44 million barrels per day

News and Review of European Economic Zone (UK)

British Manufacturing Jumped in October

Monday, November 3rd, 2014

UK manufacturing growth unexpectedly accelerated to the fastest pace in three months in October as rising domestic demand has offset weak sales to the euro area.

Markit Economics said the PMI index rose to 53.2 from 51.5 in September. Economists expect the index to slip to 51.4 from 51.6 in the previous report in September, indicated in the median estimate in a Bloomberg News survey. A reading above 50 indicates expansion.

"The continued resilience in the domestic market" is the main thrust of the new businesses, said Rob Dobson, an economist at Markit in London. "This is part of the offset a further decline in new business in foreign countries, as exporters hit by the euro zone economy is stagnant and the euro-sterling exchange rate is relatively higher."

The pound rose against the dollar after the release of the survey results and traded in the range of 1.6005 at 16:50 pm, up 0.1% on the day.

News and Review of European Economic Zone

Euro Zone Manufacturing Activity Still Slow in October

Monday, November 3rd, 2014

Eurozone manufacturing sector activity expanded slightly slower than the previous estimate last month as the producer price cuts failed to boost the level of new orders, according to the results of a business survey on Monday. Cut prices for the second month, along with a slow expansion in Germany as well as the contraction in France and Italy, will be prohibitive as the European Central Bank efforts to prevent deflation. With the growth in the euro zone economy stagnated in the second quarter, the inflation rate reached only 0.4% in October, the ECB is under pressure to add stimulus.

Markit manufacturing PMI for October was at 50.6, above the 50.3 in September, but was slightly below the previous estimate at 50.7. October marks the 16th month the PMI index has been above the level 50 output index will contribute to the composite PMI to be released later Wednesday, rose to 51.5 from 51.0 in September, although also lower than the previous results in 51.9.

"The performance of the euro zone's manufacturing sector at large remained flat since the beginning of the fourth quarter," said Rob Dobson, senior economist at Markit. "Therefore, the manufacturing sector is not likely to give a significant boost to GDP growth is anemic euro zone."

News and Economic Review Zone Asia (Japan)

Post-Stimulus BoJ, Investors Back Focus On Abe Policy

Monday, November 3rd, 2014

The addition of the stimulus by the Bank of Japan makes market focus again turned toward the economic policies of Prime Minister Shinzo Abe and the decisions he faced to raise the sales tax. While corporate profits rose, the yen weakened and stock markets have soared by 57% since Abe office 22 months ago, the prolonged economic expansion has not been achieved. The rate of increase in consumer inflation reached only half of the central bank's target and the gross domestic product, the sharpest contraction in five years in the second quarter after the first stage of the sales tax increase. Abe is under pressure to continue to strengthen the management of the company, the deregulation of agriculture, increase the participation of women in the workforce and achieve trade agreements separately trigger long-term growth. He also must decide in coming months whether Japan could return to face the increase in the sales tax to help reduce the level of debt in the world, despite of what he considers corporate tax cuts.

"Although the BOJ gave them plenty of time, the government must do two things: run growth strategies and fiscal consolidation," said Masaaki Kanno, chief Japan economist at JPMorgan Chase & Co. in Tokyo and a former central bank official. "If the government is still reluctant and lazy and just enjoy a weaker yen and the strengthening of the stock market, then we will only waste time and the result will be bad."

News and Economic Review Zone Asia (China)

Maintain China's manufacturing expansion in October

Monday, November 3rd, 2014

HSBC China's manufacturing activity version showed improvement in October, the reverse version of the Chinese government to decline, though still showed expansion.

As per estimates of economists, HSBC today released a final reading of 50.4 in China's manufacturing activity rose from 50.2 in September. While on Saturday the Chinese government release data on manufacturing activity of 50.8, lower than economists expected and the previous month at 51.1. Activity in October the government's version was the lowest in five months. An index level above 50 indicates expansion, while a reading below 50 indicates contraction.

US demand helped Chinese manufacturing sector, however economists memeperkirakan the bamboo curtain will record the lowest economic growth since 1990 in this year

Consolidated Backup From EIA Back Oil Prices Sink

Friday, October 31, 2014

West Texas Intermediate oil fell from its highest price in more than a week after a government report overnight showed US crude reserves jumped.

Futures contract fell by 0.3% in New York after yesterday rose to its highest level since October 21. Crude stocks rose as much as 2:06 million barrels last week to the highest level in nearly four months, in the report by the Energy Information Administration last night. Supply and demand for oil will return to its equilibrium level and OPEC members are not waging a price war, the secretary general of OPEC, Abdalla El-Badri, the Oil & Money conference in London yesterday.

"The increase in reserves has given the downward pressure on oil," said Kang Yoo Jin, a commodity analyst at Woori Investment & Securities in Seoul. "Anxiety in excess supply in the market has not abated since OPEC has not made ​​any statement so far on possible production cuts."

WTI oil for December delivery fell as much as 38 cents to $ 81.81 a barrel in electronic trading on the New York Mercantile Exchange, and is currently engaged in a range of $ 81.84 at 8:45 pm. The contract yesterday rose by 78 cents to $ 82.20. Oil prices have dropped by 17% this year.

News and Economic Review Zone Asia (Japan)

Achievement Strategies Inflation Japan Start Questionable

Friday, October 31, 2014

Community and economic actors in Japan started to not believe in the government's ability to boost the rate of price inflation. Because since the stimulus was launched one and a half year ago, consumer prices did not go up and it tends to deteriorate.

Quantitative easing or monetary easing undertaken by the Japanese government criticized. Although the proportion is added repeatedly, yet residents also enjoy the benefits of the policy. No wonder more and more people are skeptical with achieving the inflation target of 2% in 2015.

"Since the stimulus was first launched, many people are not convinced by the government's ability to meet the inflation target of 2%," said Goldman Sachs chief economist for Japan, Naohiko Baba. Baba even more confident that the target will not be achieved next year because some of the data does not support the government. Goldman Sachs analyst opinion is also shared by the chief economist of Mizuho Securities, Yasunari Ueno. Ueno precisely estimate Japan's core inflation will fall below 1% in October, slightly lower than the record in September, 1.0%. The central bank argued that the recent decline in inflation is not something to be feared. Prices slump more are due to the decline in oil prices, which should be good for the economy.

On Tuesday, Bank of Japan (BOJ), Haruhiko Kuroda, ensure that the program of monetary easing will end in a period of office which expires in 2018. In hearings before the parliament, he insisted he was the one who would end the current loose monetary policy targets inflation of 2%.

Speculation about the expiration of monetary easing is surfaced in recent weeks. MPs wanted the central bank gives a sense of comfort associated expiry of economic stimulus. When asked about it, the BOJ governor declares the stimulus period is dependent on the achievement of the inflation target of 2%. "I am optimistic that the inflation target will be met in fiscal year 2015, after which we will talk to end the monetary easing," he said. The central bank has no other scenarios because it remains confident that inflation will eventually recover next year.

News and Review of European Economic Zone

ECB's Nowotny QE Not Closing Opportunities

Friday, October 31, 2014

Protracted low growth rate is the greatest risk facing the euro zone, according to the Policy Council member Ewald Nowotny of the European Central Bank on Friday, as he refused to rule out a program of quantitative easing (QE) for the euro zone. "I think we all have learned in life that matches do not say 'never'," said Nowotny who also heads Austria's central bank, when asked about the chance of QE. Comment is quite surprising given that policy measures are usually hawkish Nowotny. He was reportedly in favor of the central bank chief Jens Weidmann of Germany in voting against asset-backed securities purchase program (ABS), which was announced last September.

Nowotny declined to comment on Friday, and also refused to rule out the purchase of program expansion to include corporate bonds, or government bonds. "We are just starting a new program. I think it takes time to see the impact," he said. Global stocks falter on Wednesday and Thursday after the Fed's hawkish tone of voice as to confirm the end of his bond-buying program. Nowotny said however, such a move would only have a minor impact on Europe, primarily related to capital flows.

Nowotny added that the rate of economic growth continues to be at a low level even of taking a threat to the euro zone rather than flat growth or even economic contraction. Estimates indicate ECB eurozone economy flats between April hinga June this year, after growing by 0.2% in the first quarter. "I think this is the challenge that we face today," said Nowotny. He also agreed that the euro will probably continue to depreciate sharply, describing it as a "side effect" of the ECB policy stimulus. "If we look at the historical context, of course, there is the potential drop in the euro," he said. The euro has weakened about 6% against the dollar since the high level of 2014 in June.

News and Review of European Economic Zone

Euro Zone Inflation Rate Up Thin in October

Friday, October 31, 2014

The inflation rate in the euro zone rose slightly in October, according to initial estimates by the European Union's statistics office on Friday, giving some hope that the deflation can be avoided. Eurostat said consumer inflation rate in the euro zone rose as much as 0.4% in October, according market expectations, a day after German inflation rate slowed to 0.7%, its lowest level since the May. European statistikuni Office said the highest rate of increase was printed by the service sector, sebeasr 1.2%, followed by a 0.5% increase in the price of food, alcohol, and tobacco. Outside food and energy, prices rose as much as 0.8% in October, steady from September.

The ECB, which has a mandate to maintain the rate of inflation to be around, but below the level of 2%, has been committed to expansionary policy, including asset purchase plan, and said it was considering further policy if needed. Economic sentiment data better than expected on Thursday, which is also signaled by a rise in inflation expectations of consumers and producers, may give the central bank refrained separately incentive not to take further policy actions before the end of the year. Eurostat data on Friday also showed the unemployment rate in the euro zone remained steady at 11.5% in September.

News and Review of European Economic Zone (Germany)

Figures German Retail Sales Exceed Estimates Drops Sharply

Friday, October 31, 2014

Negative news re-accepted by business and the European economy some time ago. Retail sales data (retail sales) of Germany suffered its biggest monthly decline since May 2007 the period of September 2014 the percentage was 3.2%.

Results of retail sales data added to concerns about the lack of citizen consumption amid a slowdown in the European economy. September retail sales fell 3.2% (adjusted for inflation and kalende count) compared notes last August. The rate of decline was even more severe than the estimate of economists surveyed by Dow Jones Newswires, who forecast the data is only down 0.8%. Worse, the growth rate of retail sales for August 2014 were also revised down from an estimated 2.5% to 1.5%. Retail sales data itself is known as an economic indicator that its movement is quite volatile so herap undergo significant revision.

For annual calculation, German retail sales are still up 2.3%. Throughout the first 9 months of 2014, retail sales figure rose 1.3% in real terms compared to the previous year. In annual retail sales, sales of food products, beverages and tobacco rose 4.2%. While the increase in the number of sales of non-food goods only by 1.0%. The sale of textile products, clothing, footwear and leather goods fell by 7.3%, according to the agency statistike Germany, Destatis.

News and Economic Review Zone Asia (China)

Balance of International Payments Balanced China In Q3

Thursday, October 30th, 2014

China's international balance of payments in the third quarter with the balance in the current account surplus offset the deficit in the capital account, as announced by the Chinese government on Thursday.

China's current account surplus in the three months ended September rose to $ 81.5 billion, compared with a revised surplus of $ 73.4 billion in the second quarter.

The country currently has the financial and capital account deficit of $ 81.6 billion in the third quarter, indicating an outflow of investment funds, said the State Administration of Foreign Exchange of China, the result has been revised from a deficit of $ 16.2 billion in the second quarter.

The current account surplus is seen in the period from January to September amounted to $ 162.0 billion and a deficit in the balance sheet and capital of $ 14.1 billion, regulators said.

China's foreign exchange reserves fell by $ 430 million in the third quarter. Earlier, the central bank said foreign exchange reserves at the end of September at the level at $ 3.89 trillion, down from $ 3.99 trillion at the end of June

News and Economic Review Zone Asia (China)

Central Bank of China Prepare for Safety Net Savings Bank

Thursday, October 30th, 2014

The threat of bankruptcy overshadows Chinese banks. This indication can be seen from the increasing number of financial institutions that went bankrupt for failing to pay debts.

Amid the negative judgments made ​​by financiers, the Chinese government asserted bring the banking system was safe despite the presence of small and medium-scale banks are bankrupt. "Sometimes debt debt default is something reasonable. Thus this will make the financial industry players to be more vigilant," said Deputy Head of the Central Bank of China, Yi Gang was quoted as saying in a forum by news portal Sina.com. Statement senior People's Bank of China came out after many parties are concerned with China's banking system is considered to be too loose. The ratio of bad loans or bad debts increased quality, while at the same time companies are the backers for local governments face a sizable debt load.

To reduce risk in the credit sector, the government plans to make a deposit insurance scheme. This safety net is made so that the depositors feel calm on the security of their funds in the bank. "Backlog is also a form of Chinese anticipation of the possibility of bankruptcy is usually experienced by small-scale banks," added Yi Gang. However, he has not expressed a certainty issuance of the regulation.

News and Review of European Economic Zone (UK)

Rate of Home Price Increase Slows in UK

Thursday, October 30th, 2014

The rate of growth of house prices in the UK again slowed for the second month in a row in the annual rate in October, adding to evidence that the sharp recovery in the UK housing market began to slow down, according to the survey results on Thursday. Nationwide said house prices rise in the annual rate of 9.0% in October, down from 9.4% in September, but was above analysts' estimates of 8.5%. For monthly rates, house prices rose by 0.5% in October, slightly higher than forecast and followed a slight decline of 0.1% in September.

"Nationwide data for October are in line with our view that house prices will continue to rise but at a rate that is more restrained," said Howard Archer, chief UK and European economist at IHS Global Insight. "But the increase in peluanga that the Bank of England will not raise interest rates before mid-2015 will support housing market activity in the dean, and possibly also the price of the home."

News and Review of European Economic Zone (Germany)

German Unemployment Rate Down Sharply

Thursday, October 30th, 2014

The unemployment rate in Germany was reduced more than expected in October, fell most sharply in the six months as the signal level of the firm belief in the power of the largest economies in Europe today. The number of unemployed fell as much as 22,000 becomes 2,887 million in October, according to the Federal Labor Agency in Nuremberg. Economists expected an increase of 4,000 people. The unemployment rate remained at 6.7%, its lowest level in more than two decades. The German economy can only grow slowly, if growing, following a contraction in the second quarter, according to the Bundesbank. Yet recent surveys show a decline in business sentiment, the level of demand for labor increases, with the opening of employment is at its highest level in nearly three years.

"Economic conditions are still good and relatively healthy labor market, despite the poor data in recent weeks," said Carsten Klude, chief investment strategist at MM Warburg & Co. in Hamburg. "The company reported earnings this season shows a possible third quarter not too bad. "

OPEC Do not Panic With Oil Price Decline

Thursday, October 30th, 2014

OPEC Secretary General Abdullah al-Badri said not to panic with the drop in oil prices. Oil prices have dropped sharply since July in which both Nymex and Brent oil is now trading near three-year low levels. The decline in price below the psychological level of $ 100, the price level of the proposed majority of OPEC members, has raised hopes that there pemangakasan OPEC production on Nov. 27 meeting. However, comments that Badri said OPEC oil production in 2015 will probably not be able to change sinyalkan no output cut decision at a meeting next month.

OPEC seems now more focus on maintaining market share and are willing to see a drop in price in order to ensure market share is not eroded by the US shale oil. "High oil output as production cost of shale oil will be reduced if oil prices were in the range of $ 85 per barrel. Although OPEC members had to accept lower oil prices, but this is necessary to keep the increase in demand in the long term," said Badri. "There is nothing wrong with the current market."

Gasoline Demand Over Oil Rebound Looks Stronger

Wednesday, October 29th, 2014

West Texas Intermediate oil rose for a second day on speculation that fuel demand rose amid signs of improving US economy.

Futures contract rose as much as 0.7% in New York. US gasoline reserves probably fell as much as 900,000 barrels to 203.5 million last week, according to a Bloomberg survey before the Energy Information Administration released figures on tonight. Crude stocks fell as much as 3.7 million barrels, the American Petroleum Institute reported yesterday. US consumer confidence rose to the highest level in seven years in October, in the show by the data from the Conference Board.

"Oil prices have been boosted by economic indicators better than expected result that we get from countries including the US and Japan," said Hong Sung Ki, a senior commodity analyst at Samsung Futures Inc. in Seoul today. "We can not expect to get a strong rebound in oil, but I say that the sharp decline today has come to an end."

WTI oil for December contract rose by 56 cents to $ 81.98 a barrel in electronic trading on the New York Mercantile Exchange and is currently moving in the range of $ 81.73 at 14:55 pm. The contract yesterday rose by 42 cents to $ 81.42, it is the highest closing level since October 23. Oil prices have dropped 17% this year.

News and Economic Review Zone Asia (Japan)

Tax Increment Predicted Japanese Automotive Industry Worsens

Wednesday, October 29th, 2014

Japan's auto industry has been sluggish in recent months. Unfortunately, the condition can get worse as the government prepares to raise the sales tax for another year.

If the Tokyo government really be raising the sales tax from 8% to 10% in October, the car sales are expected to decline to around 4.55 million units in fiscal year 2016. The number was lower than the total cars sold in 2013 and then, the figure reached 5.69 million. Predictions had been expressed by Ministry of Economy, Trade and Industry a few moments ago.

For the short term (up to the current fiscal year that ended March 31, 2015), sales are expected to fall to 4.95 million units from the effects of the consumption tax increase in April. Prime Minister Shinzo Abe is likely to give certainty about the plan to increase the sales tax to the public in December. If it is applied, there is a chance he will take the other way instead of raising the sales tax next year.

The Japanese economy is still sluggish despite the government released a series of monetary stimulus since last year. Consumer purchasing power is very low and the prices do not go terkerek ride. Weak Japanese citizens' spending power continues until the third quarter as reflected in the decline in sales of motor vehicles both cars, trucks and buses as much as 0.5% in August compared to the volume of sales in the month of July 2014. Reduced consumer transactions in the automotive sector is the ke- two in a row, continuing a decline that occurred in July. Japanese automotive product sales in the country amounted to 206 606 units or less than the previous month's data.

News and Review of European Economic Zone (France)

French Consumer Confidence Stagnant in October

Wednesday, October 29th, 2014

French consumer confidence stagnated at low levels in October, statistics agency Insee reported Wednesday.

The consumer confidence index in the 2nd largest economic bloc euro was last at level 85, unchanged from the rate in September. These levels also remained well below the long term average at the level of 100, according to Insee.

Consumers' assessment of their financial strength and ability to make savings recorded only a slight change compared to September. While the French household optimism about the standard of living is declining, despite concerns over rising unemployment reduced

News and Review of European Economic Zone (UK)

The UK Growth Rate Will Slows Ahead of End of Year

Wednesday, October 29th, 2014

The rate of growth of the private sector in the UK slowed in the span of three months to October, according to a report on Wednesday, which warned that overall economic growth will be hampered in the fourth quarter of 2014. The latest growth indicator of the Confederation of British Industry, which predicts the rate growth and covers about 75% of the private sector economy, indicating that the growth rate is still thin on the long-term average in the third quarter. The growth rate is expected to increase rapidly in the next 3 months, but the CBI statement shows "Recent data in accordance with our forecast that GDP growth rate will slow in the rest of 2014. thinner"

Data released last week showed UK economic growth slowed slightly in the third quarter as expansion in the manufacturing sector eased and service industry growth rate slowed. UK GDP expanded by 0.7% in the third quarter from the previous quarter, according to the Office for National Statistics on Friday. For the annual rate, the economy grew by 3%, with the data according to analysts' expectations.

CBI projecting growth to be around 0.6% - 0.7% in the rest of the year. "Outlook UK economy as a whole remains healthy," said the CBI, despite the risks associated showed a prolonged reduction in economic activity in the euro zone, and the risk of geopolitical tensions in Ukraine, Russia and the Middle East.

News and Review of European Economic Zone

Europe Approves Budget French & Italian government

Wednesday, October 29th, 2014

The European Commission gave approval for the French and Italian government budgets that have been revised and uttered no euro-zone members that violate rules of fiscal stability. Paris and Rome has revised the 2015 budget which had received criticism and the risk rejected by the European Commission. Jyrki Katainen Commissioner welcomes the commitment of euro zone members on fiscal stability but pointed out the details of the analysis will be continued next month.

Italy has cut its budget deficit target for 2015 from 2.9% to 2.6% of GDP and ignore the 3.3 billion euros of tax incentives. France also reduce the budget deficit of 0.5% of GDP budget deficit target despite a 4.3% of GDP is still high compared to the EU standard 3% of GDP. Paris sure can get additional savings of 1.5 billion euros as lower interest expenses and a contribution to the EU budget.

French and Italian government budget was getting criticism from Germany, the Netherlands and Austria are worried about the commitment of the two countries on fiscal stability. However, no major country in the euro zone seemingly in Paris and Rome clashed with are gaining strong political pressure from the country to spur economic activity. Paris and Rome even want to keep the European Union examines the policies that can spur economic activity as the euro zone is now threatened with recession again.

Goldman Crop Price Projections, Oil Weakens

Tuesday, October 28th, 2014

WTI crude oil fell on Monday, hitting its lowest level in 28 months after Goldman Sachs reduce projected oil prices due to weak demand and rising inventories.

Goldman cut its forecast for Brent crude to $ 85 per barrel from the previous $ 100 per barrel for the first quarter of 2015. Meanwhile, Goldman cut its WTI oil to $ 75 a barrel from the previous $ 90 per barrel. Goldman became a bank is the most bearish for oil prices on Wall Street.

Oil managed to cut its losses as the dollar weakened against major currencies. Dollar-denominated oil tends to benefit when the dollar weakens. Data shows home sales rise less than expected, reinforcing speculation the Federal Reserve will keep interest rates low for longer making the dollar depressed.

WTI crude oil trading on Monday closed at $ 80.67 a barrel, with daily highs $ 81.29, and the lowest $ 79.44

News and Review of European Economic Zone (Sweden)

Sweden Cuts Interest Rates To Zero Percent Level

Tuesday, October 28th, 2014

Sweden's central bank cut its benchmark interest rate to as low as zero percent on Tuesday, in a move to boost inflation expectations continuously depressed below the central bank.

Riksbank, Sweden's central bank cut its interest rate from the previous level 0:25% at zero percent, below analysts' forecast of 0.05%. The impact of its currency is the Swedish krona plummeted to 4-year low against the dollar and fell to a three-month low vs. the Euro.

Swedish inflation rate as measured by indicators CPIF, dirilsi only up 0.3% in September, down 1.4% below the central bank's forecast lately.

News and Economic Review Zone Asia (South Korea)

KOSPI Ends Slump Due to Domestic Negative Sentiment

Tuesday, October 28th, 2014

Until the trading session on Tuesday afternoon (28/10), the KOSPI index - South Korea observed still depressed in the relegation zone as a result of getting carried away sell-off in Asian markets and eroded by domestic consumer sentiment index data is decreased.

Consumer sentiment index was recorded in October decreased to a level of 105 from the previous month at 107. The data rate is the lowest in the last 3 months also imposes on the Seoul stock movement today.

Related to these data, South Korea's central bank (BOK) explains that the decline in the index was in line with the economic outlook for 2015 cuts that have been made by various financial institutions, including the effects of a slowing domestic economy this year.

Referring to data released Oct. 24, the third quarter GDP growth rate y / y (GDP annual growth rate) recorded decreases to a level of 3.2% from the previous quarter a year ago at the rate of 3.5%, and slightly below expectations of 3.3%.

On the stock exchange floor seem Samsung Heavy Industries and Samsung Engineering each fell more than 1 percent as investors booked profits by selling them after the shares rallied up to 7 percent on Monday.

News and Economic Review Zone Asia (Japan)

BOJ Governor: Stimulus would Ends Fiscal Year 2015

Tuesday, October 28th, 2014

Bank of Japan (BOJ), Haruhiko Kuroda, ensure that the program of monetary easing will end in the period post 2018 kadaluarsatahun. In hearings before the parliament, he insisted he was the one who would end the current loose monetary policy targets inflation of 2%.

speculation about the expiration of monetary easing is surfaced in recent weeks. MPs wanted the central bank gives a sense of comfort associated expiry of economic stimulus. When asked about it, the BOJ governor declares the stimulus period is dependent on the achievement of the inflation target of 2%. "I am optimistic that the inflation target will be met in fiscal year 2015, after which we will talk to end the monetary easing," he said. The central bank has no other scenarios because it remains confident that inflation will eventually recover next year.

Kuroda also called on all parties not to discuss the timing of the end of monetary easing because everything is still too early. "We are only halfway, not time to talk cessation of stimulus," he added.

News and Economic Review Zone Asia (Japan)

BOJ May Be Cut Inflation Outlook

Tuesday, October 28th, 2014

The Bank of Japan will consider to cut the inflation outlook in a report this week dampat related decline in oil prices, according to sources. The central bank may lower or change the assessment that the pace of consumer inflation is likely to "go back to follow the trend of increase in the second half of this fiscal year," according to a source who declined to be identified. Some officials see the potential BOJ will cut its inflation forecast for the year to March and next fiscal year, according to sources.

While it amplifies the signal of slowing momentum in the third largest economy in the world, related sources said the impact of a decrease of 21% in oil prices since June is likely to be passed. This will make the BOJ maintains its view that inflation is likely to touch the target of 2% around the middle of the year beginning April 2015, they said.

"It seems that almost certainly will BOJ cut its inflation outlook in the near Sometime given the decline in oil prices," according to JPMorgan Chase & Co. analysts led by Masaaki Kanno. The central bank may also have to admit failure as soon as January to achieve an inflation target of 2% within a period of 2 years. Haruhiko Kuroda BOJ Governor and other board members are expected to keep monetary policy at a meeting on 31 October. the BOJ will release its semi-annual outlook for the economy and inflation on the same day.