News and Reviews Asian Economic Zone

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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

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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.

[mynameisandhy]

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

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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."

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Car and Motorcycle Sales in Japan Increasingly Lethargic

Tuesday, November 4th, 2014

 

Japanese auto industry still fail to host in their own country. The low interest in shopping the people making the sales figures of four or more wheeled vehicles declined in the month of October 2014.

 

Automotive sales for automobile, trucks and buses for the region of Japan fell 9.1% compared to October 2013. According to the Japan Automobile Dealers Association some time ago, this decline marks a drop to 3rd in a row since August yesterday.

 

Domestic auto sales totaled 240.511 units in October. This figure does not satisfy the manufacturer because it is far below the number of best-selling vehicles in the past year. Sales of automotive product itself is vital to the Japanese economy as it is the first consumer spending data are released each month.

 

Meanwhile, in a separate place, Japan Light Motor Vehicle and Motorcycle Association said the number of requests for vehicles with 660cc power masksimal down 0.7% for the same period of the calculation. The decline was the first time in two months.

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News and Economic Review Zone Asia (Japan)

 

Kuroda Vows to Reach Target Inflation

Wednesday, November 5th, 2014

 

Bank of Japan Governor Haruhiko Kuroda, which last week surprised the global financial markets by increasing the stimulus program, said the central bank was ready to do more to achieve the inflation target of 2% and re-invigorating the economy. Kuroda stressed that the BOJ has the determination to do whatever it takes to achieve the inflation target within two years and end deflation for almost two decades.

 

"There is no change in our policy to try to achieve the 2% inflation target as soon as possible, the estimated time of approximately two years," Kuroda said on Wednesday. "There are no restrictions on our policy tools, including the purchase of Japanese government bonds," he said responding to a question from one of the private post-speech analysts.

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News and Economic Review Zone Asia (Japan)

 

Nomura: BOJ Stimulus Adding to Return in 2015

Thursday, November 6th, 2014

 

The Bank of Japan still is not finished with monetary stimulus and will probably surprise the market return for the third time as trying to cushion the impact of the sales tax increase is "almost inevitable", according to Nomura Holdings Inc .. central bank's decision on October 31, then separately add strengthen the bond-buying opportunities that Prime Minister Shinzo Abe will run the plan to raise the national sales tax, according to economists. Abe will be decided at the end of the year if the sales tax will be raised to 10% from October next year, from 8% today.

 

"Most likely we will see additional easing again along with the increase in public spending around the time of the sales tax increase," said Toshihiro Uomoto, chief strategist at Nomura credit. The yen may weaken will deepen with increasing purchasing program by the BOJ at risk diminish confidence in the currency, he added.

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News and Economic Review Zone Asia (China)

 

Car sales in China soared During October

Friday, November 7th, 2014

 

Vehicle sales in China last month grew at the fastest pace for the first time since June, dealers often offer more incentives to achieve their full year target before the end of the fourth quarter.

 

Passenger Car Association said in a report today on their blog sites that retail deliveries of cars and SUVs multipurpose rose as much as 9.3% to 1.66 million units for the month of October. Sales have slowed for a period of three months for each type of vehicle since rose by 14% in June, according to data published by the group.

 

The dealer usually within two months terakhi rmengatakan as the busiest period for the sale of the vehicle, they called as "Golden September and Silver October." The increase in sales helped ease concerns that the world's largest automotive market is slowing down, as demand for commercial vehicles slumped in which analysts estimate the economy will expand at the slowest pace for a full year since 1990.

 

"The dealers insensitfnya may increase in the coming months to help out requests." said Song Yang, an analyst at Barclays Plc in Hong Kong.

 

Jeff Chung, an analyst at Bank of America Merrill Lynch in its report of November 3 saying that Volkswagen AG and General Motors Co. started to reduce prices on some models produced by the cooperation partner SAIC Motor Corp. which until the last week of October. Discounts given by them should provide further pressure on manufacturers from Japan and Korea during the fourth quarter, said Jeff.

 

Nissan Motor Co. and Honda Motor Co., reducing their sales forecasts in two weeks, citing the rigors of competition. Both reported sales declines in October. Toyota Motor Corp. melawantren success by scoring an increase of 27%, helped by sales of the Corolla sedan them.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

The growth of China's economy Sustain Export Sector

Monday, November 10th, 2014

 

The country's exports rose more than estimated in October, signaling the level of foreign demand might help prop up the economy is expected to grow at the slowest pace since 1990. Exports increased by 11.6% since last year, exceeding the estimate of 10.6%. Imports rose as much as 4.6%, compared with a projected sebeasr 5%, making the trade surplus was 45.4 billion dollars, according to the customs administration.

 

Recovery in the US and Europe sustain export growth, with both regions cover about almost one-third of export orders. The level of exports to Hong Hong, which is only for transit, rose as much as 24% in October. Incompatibility between the trade data released by the China and Hong Kong have raised concerns false invoices, which used to spite avoiding capital flows to China.

"The US recovery is strong enough that pushing up the rate of China's exports," said Hu Yifan, chief economist at Haitong International Securities Group Ltd. in Hong Kong. "There may be a slight error in the data due to trade false invoices, but not like last year."

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Economists Call Abe Will Raise Tax Return

Monday, November 10th, 2014

 

12 of 15 economists surveyed by Bloomberg said the Prime Minister of Japan, Shinzo Abe, will again raise taxes next year as planned. Economists from JPMorgan Chase & Co. and UBS AG are two of the few economists who predicted it.

 

Based on a survey conducted on 31 October to 5 November Abe is expected to raise taxes by 2% to 10% in October next year. Abe decision will be taken on the terms of the health of the Japanese economy before the end of this year the deepest contraction in the last five years after the tax increase in April.

 

Japanese Economics Minister Akira Amari, said Abe neutral toward tax increases. Amari also said he could not say how the required growth rate in the third quarter to decide whether the tax will again raised.

 

Economists predicted Japan's economy is expected to grow 2.8% (year-on-year) in the three months ended September, after the previous quarter slumped 7.1%.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Annual Inflation Rate Stable in October

Monday, November 10th, 2014

 

The annual inflation rate of consumers in China are still close to the low level of 5-year in October at 1.6%, re-strengthen the evidence that the state of the world's second largest interconnected economy is slowing and make room for the government to stimulate growth if necessary. Analysts expect the annual inflation rate to 1.6% of consumers in October, the same as in September.

 

On a monthly basis, the rate of consumer inflation flat in October, according to the National Bureau of Statistics on Monday, it is compared with expectations for a rise of 0.1%. The producer price index fell as much as 2.2% from last stahun, decreased for 32 consecutive months, as weak demand levels depress the marketability of the company. The market expects a 2.2% decline sebeasr on the producer price index followed a decline of 1.8% in September.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Current-account & Machinery-orders So Investors Focus Japan

Monday, November 10th, 2014

 

Japanese shares fall to low levels in the past week in early trading last week (10/11) due to the yen strengthened sharply against the dollar to a level of 114 after responding to US employment data which was released under ekepektasi last weekend.

 

On Monday, the yen had strengthened to the level of 113.84 after the weekend trade recorded weakened to 115.46, Reuters platforms. The main index Nikkei (N225) ended down 0:59 or -99.85% in the range of 16780.53 points.

 

On the stock exchange floor seem Nippon Telegraph and Telephone Corp. fell as a result of revenue profit warning after the company warned that the 'net profi't fiscal year will drop 10% compared to previous projections estimate that there are bulls thin.

 

However, investors' focus this week will be on the release of the data the current account which will air Tuesday and data machinery orders in Thursday where the current account surplus is expected to rise, while the production of machinery orders data is projected to decline throughout the month of September.

 

Figures estimated current account surplus of 534.2 billion yen in September from the previous month at 287.1 billion yen. While the data machinery orders m / m will decline 1.9% in September, a sharp drop from the previous month in August which recorded 4.7% increase, according to a Reuters poll.

 

In addition to important economic data that are the focus of investors, a summit of world leaders will also be the center of attention on the market this week. A total of 21 world leaders from countries which are members of the APEC group will meet in Beijing on 11 November to discuss the agenda such as economic integration and growth prospects of reform. In addition, the G20 Leaders Summit will also be held in Brisbane, Australia on November 15 to 16.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan Surplus Record Greater Of Estimates

Tuesday, November 11th, 2014

 

Japan posted a current account surplus in three months in a row in September, and the surplus was better than economists expected. Japan's Ministry of Finance reported a current account surplus rose to unadjusted 963 billion yen from August amounted to 287.1 billion yen. The surplus is larger than the Reuters poll results are an estimate of 534.2 billion yen.

 

Income from overseas investment is said to be the backbone of the surplus. Compared to September 2013 the surplus rose 61.9%. As for the primary income account, which includes income from the ownership of foreign stocks and bonds, Japan recorded an increase of 24.5% to a surplus of 2.04 trillion yen.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Miyao: BOJ would consider QE Interest on the Second Semester 2015

Wednesday, November 12th, 2014

 

Member of the Board of the Bank of Japan, Ryuzo Miyao, on Wednesday said that there is a high chance that the central bank can begin to discuss the end of his program of quantitative easing in the second half of fiscal year 2015. Miyao said the BOJ's decision to increase his stimulus money last month pencetakkan increase the chances of achieving inflation target in the second half of fiscal year 2015, which would make the central bank began to think to repeal the program.

 

However Miyao not provide details about when he said the central bank will start to tighten policy. He said that the risk of easing by the BOJ will result in asset bubbles is quite limited.

 

Miyao is one of the four board members who support the proposal BOJ Governor Haruhiko Kuroda to add stimulus and October 31 in order to cope with slowing inflation and weak growth.

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News and Economic Review Zone Asia (Japan)

 

Japan Machinery Orders Level Up 2.9% in the month of September

Thursday, November 13th, 2014

 

Japan's core machinery orders, a leading indicator of capital spending, rose for the fourth month in September. Core machinery orders rose 2.9% on a monthly level, above expectations for a decline of 1.9%, but slower than the increase of 4.7% in August. Machinery orders rose as much as 5.6% in the third quarter, the second quarterly increase in a row. The companies surveyed estimated that the level of orders will be down 0.3% in the last quarter. For the annual rate, machinery orders rose 7.3% in September, above expectations for a decline of 1.3%.

 

"Currently we do not really pay attention to the machinery orders data," said Joe Zidle, strategic portfolio, Richard Bernstein Advisors, warned that the Japanese market is currently driven by the policy. "Menurutki what is more important for investors is whether the Bank of Japan will continue to respond to the amount of data," he said. "Outlook of the economy slowed down, depressed by the sales tax increase in April. I think the Japanese market are looking at something similar to what we see in the US in the last 3-4 years, such as the Federal Reserve and Quantitative Easing. That was the focus in the Japanese market. "

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News and Economic Review Zone Asia (China)

 

Chinese Industrial Production Slows in October

Thursday, November 13th, 2014

 

Data from the Chinese government showed China's industrial production growth slowed in October from the previous month, gives an overview of the continuing obstacles facing the Chinese economy.

 

China's statistics bureau reported industrial production grew 7.7% in October from a year earlier, slower than the growth of 8.0% in September. Economists had forecast growth of 8.0%. As for growth month-to-month, China's industrial production rose 0.52% in October from September which rose 0.91%.

 

Other data showed fixed investment rose 15.9% in the period from January to October of the same period in 2013. The increase was lower than the period January to September amounted to 16.1%, and lower than economists' estimates of 16.0%. Retail sales growth year-on-year also noted a slowing slightly in September by 11.5%, of the growth in August at 11.6%.

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News and Economic Review Zone Asia (South Korea)

 

The Bank of Korea Maintain Interest Rate

Thursday, November 13th, 2014

 

The Bank of Korea as expected to keep interest rates at a record low of 2.0% at the monetary policy meeting today. Most economists expect the central bank South Korea would not change monetary policy after cutting interest rates to 0.25% in October, and provides a view of the South Korean economy is not too bad so it does not need further rate cuts.

 

South Korean exports are able to maintain growth, although still below the estimate, while household debt levels are high making policy makers are reluctant to lower interest rates further and make the cost of borrowing is too low. However BOK still face pressure to loosen monetary due to low inflation and weak domestic demand.

 

Strengthening of the won against the yen after the Bank of Japan monetary stimulus adds additional pressure for the BOK to cut interest rates to lower the value of the South Korean won is that exporters are able to compete with the Japanese exporter. BOK last October cut its forecast of economic growth this year to 3.5% from 3.8%.

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan's GDP Will Affect Tax Decision Abe

Friday, November 14th, 2014

 

News of the plan of Prime Minister Shinzo Abe, which will delay the tax increases, as well as ask the elections faster adorn the Japanese financial market headlines this week. But experts said the decision would depend on the Japanese gross domestic product data will be released on Monday.

 

Economists in a Reuters survey estimate Japan's annual GDP will grow 2.9% in the period from July to September, rebounding from a decline of 7.1% in the previous quarter, which is the biggest contraction since 2009. Kenaiakan first sales tax in 17 years last month April said to be the cause of the sharp contraction in GDP is the third largest economy. Abe in April to raise the sales tax to 8% from the previous 5%, and earlier plans to raise back to 10%.

 

On Wednesday, the Minister of Economy of Japan, Akira Amari, said the government should implement a new fiscal stimulus, especially to stimulate private spending to protect the economy if the GDP data released disappointing.

 

Abe previously said it would wait until the release of GDP data to decide whether to raise interest rates or not, there are some analysts who say Abe has taken a decision before the data is released

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Japan's GDP contracted, Abe seems Will Defer Tax Increase

Monday, November 17th, 2014

 

Japan's economy contracted at an annual pace of 1.6% in the third quarter after a contraction in the previous quarter, is likely to reinforce the view that Prime Minister Shinzo Abe will delay the second tax increase next year. Japan's economy fell into recession in the third quarter provide the basis for Abe to defer tax increases faster and hold elections after two years he served. Japanese media reported that the Prime Minister who returned after a week-long tour to China, Myanmar, and Australia, on Monday to announce his decision to postpone the tax hike as soon as Tuesday and expressed his desire to hold elections, which are expected to be held on 14 December.

 

Data gross domestic product (GDP) compared with the forecast for a gain of 2.1% by economists and following a revision to show a contraction of 7.3% in the second quarter, which is the largest decline since the earthquake and tsunami last March 2011, according to data from the Cabinet Office on Monday. In a quarterly basis, the economy contracted by 0.4% in the third quarter. The level of private sector spending, which accounts for about 60% of the economy, rose as much as 0.4% from the previous quarter, signaling that the impact of an increase in Japan's sales tax to 8% from 5% in April and continues to be felt. This is compared with estimates for a gain of 0.8%.

Abe has said he would pay attention to the GDP data when deciding whether to proceed with a second increase in the sales tax to 10% in October of next year, in part to reduce the level of public debt of Japan. "GDP data is much weaker than expected," said Kenichiro Yoshida, senior Ekono at Mizuho Research Institute. "The growth rate is also very weak kosnumsi, which may be one reason the government will decide to postpone the tax increase."

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

New House Prices Down 2.6% in China

Tuesday, November 18th, 2014

 

New home prices in China scored the second annual decline in a row in October, increasing concern the deteriorating condition of the real estate sector. New home prices fell as much as 2.6% in October from the period a year ago, after falling by 1.3% in September, according to the release of data from the National Bureau of Statistics said on Tuesday. On a monthly basis, home prices fell as much as 0.8%, losing streak for 6 months and following a decrease of 1% in September. Economists said the property sector asset bubbles as the biggest risk to the economy of China. The sector contributes more than 15% of the Chinese economy and has a direct impact on the banking sector and construction.

 

According to Alan Jin, property analyst at Mizuho Securities, the housing sector is still slow, but there are bright spots. "This is a correction in house prices, not collapse. Many people feel this is a difficult year for China's property sector but the actual volume is the second highest level after last year. In China, a lot of demand to replace the old building into a new and modern . the demand is strong enough, "said Jin

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News and Economic Review Zone Asia (Japan)

 

Kuroda Get Majority Support, Defend BOJ Stimulus

Wednesday, November 19th, 2014

 

Bank of Japan Governor Haruhiko Kuroda get majority support today as easing monetary policy board retaining the post data show that the world's third largest economy fell into recession. The central bank's promise to increase the monetary base at an annual pace of 80 trillion yen (683 billion dollars), according to the BOJ statement in Tokyo, according economists forecast. Voting shows the results of 8-1, compared to 5-4 for the decision to add stimulus last year. Prime Minister Shinzo Abe postpone the sales tax increase and add stimulus to help the recovery as Kuroda implement asset purchases. Signal slowing inflation raises the risk of the BOJ failed to achieve its target of 2%.

 

"The BOJ will have to re-add the stimulus," said Takuji Aida, an economist at Societe Generale SA. "The economy is much weaker than expected and will become more apparent that the economy and inflation away from the BOJ scenario." Abe has held early elections to extend his term of office and finish his Abenomics policy. He delayed the increase in sales tax to 10% for 18 months, following a rise to 8% in April to encourage Japan to the fourth recession since 2008.

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News and Economic Review Zone Asia (China)

 

The pace of factory activity in China Hampered in November

Thursday, November 20th, 2014

 

China's factory activity inhibited in November as output contracted for the first time in six months, according to the survey results on Thursday. HSBC manufacturing PMI for November at the level of 50, which separates expansion and contraction, compared to the estimate of 50.3 and the following results at 50.4 in October last. The Australian dollar weakened after the data was released trehadap greenback, trading around $ 0.8607.

 

The data is the latest evidence that the country's second-largest interconnected economy continues to slow. House price data and recent foreign direct investments are also under estimated. "China is slowing and we think will continue to slow down. Most of the slowdown caused by structural problems, and we think pertumbuhanakan slowed to about 4.5% in the next 10 years. We expect a number of sectors will face serious challenges; especially real estate," said Robin Bew , MD at the Economist Intelligence Unit. Beijing party has signaled increased tolerance to a slowdown in economic growth as the transition from a major investment toward consumption-driven expansion.

[mynameisandhy]

News and Economic Review Zone Asia (China)

 

China's Central Bank Cuts Interest Rate

Friday, November 21, 2014

 

China's central bank on Friday cut its benchmark interest rate for the first time in more than two years, in an effort to lower borrowing costs and cope with the economic slowdown. China has so far still stuck in the path to the worst annual growth in 24 years.

 

People's Bank of China announced that lowered the lending rate by 40 basis points to 5.6%. PBOC also cut deposit rates by 25 basis points, effective will come into force on 22 November.

 

On the same occasion the Chinese central bank also said that if it would be more flexible in setting interest rates on deposits to raise the ceiling to 1.2 times of the benchmark level, from 1.1 times before.

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News and Economic Review Zone Asia (Japan)

 

Central Bank Stimulus Drag Yen

Monday, November 24th, 2014

 

The yen weakened and near its lowest level against the dollar after seven years several central banks in the world to add monetary stimulus, reducing the demand for air-yielding assets such as the yen lower.

 

People's Bank of China surprisingly cut interest rates for the first time since the year 2012 on 21 November after the closure of regional trade. Cut deposit rates by 0.25% to 2.75%, and the one-year lending rate by 0.4% to 5.6%. PBOC also said it would provide more flexibility in deposit rates.

 

A few hours before the President of the European Central Bank, Mario Draghi, reiterated commitment on to add monetary stimulus if needed in order to overcome the low inflation in the euro zone and spur the economy. ECB on Friday also reported started to purchase asset-backed security (ABS), which is part of the European central bank's monetary stimulus is

[mynameisandhy]

News and Economic Review Zone Asia (Japan)

 

Kuroda Affirm BoJ Will Reach Target Inflation

Tuesday, November 25th, 2014

 

Bank of Japan (BoJ) Haruhiko Kuroda confirmed the readiness of the central bank to ease monetary policy further if the emerging threats that hinder the achievement of the inflation target of 2%. "To achieve the target of price stability, the central bank has taken action and we will continue to take action," Kuroda said when giving a speech in front of a businessman in Nagoya.

 

"The central bank will assess the risks that arise on the economy and prices. If they judge necessary to achieve price stability, the central bank will not hesitate to adjust policy," said the BoJ's Kuroda. At the last meeting of October 31, the BoJ has surprised the market by announcing additional monetary stimulus by raising commitment monetary base increase of 65-75 trillion yen to 80 trillion yen per year. Minutes of the meeting were released this morning also showed a lot of senior Bank of Japan is concerned with the perception of the return of deflation in Japan.