Economic News

UK interest rates should rise to 5.25% and are likely to remain above 5% for the foreseeable future, a leading think-tank has said. Borrowing costs should rise from 4.75% now to 5% next month and then to 5.25%, early next year, the National Institute for Economic and Social Research said. Rates were set to stay above 5% despite inflation easing in 2007, it added. The Bank of England's chief economist warned recently about preventing any "sustained" pick-up in inflation. Charles Bean's comme ...

LONDON (AFX) - European government bonds were higher in a recovery from hefty recent falls despite continued strength in economic data. "Bunds looking pretty good this morning with the longer end of the European bond market leading things higher today. Up to 116.95 so far and holding near here which rather suggests that things could push higher," said John Ratcliffe at Thomson Ifr Marke ...

BEIJING (XFN-ASIA) - Operating conditions for Chinese companies have improved since the record lows recorded at the end of the third quarter as the threat of more aggressive tightening measures from the government recedes, the results of the October Xinhua Finance/MNI China Business Sentiment Survey suggest. Overall business conditions have turned up slightly, with respondents expecting them to c ...

Benedict Brogan, Daily Mail27 October 2006 A bullish Gordon Brown yesterday delivered his most upbeat assessment yet of the outlook for the economy. BULLISH: Gordon brown has issued his most upbeat predictions yet WANT TO KNOW MORE? REPORT: Rate rise 'needed' say City experts READER SERVICE: Company reports TIPS & TACTICS: Share tips OTHER STORIES Market preview: Friday Market report: Yesterday's trading Shutdowns hit Shell profits 20 years since the Big Ban ...

OSAKA (XFN-ASIA) - Euro zone inflation needs to stay below 2 pct in the medium-term although the European Central Bank will tolerate short-term fluctuations, ECB executive board member Jose Manuel Gonzalez-Paramo said. In a speech at a symposium in Osaka, Paramo said, "In a medium haul, it is important for (the) euro zone inflation rate to stay below 2.0 pct level." "In order to s ...

NEW YORK (Dow Jones) -- They could easily be wrong, but when politicians of both parties talk about next month's Congressional election, they more or less assume that that the Democrats will regain the House of Representatives. The professionals also give the Democrats an outside chance of winning the Senate, but that seems far less likely. Either scenario would represent radical change, far ...

SYDNEY (XFN-ASIA) - The US dollar was lower against the yen and euro here as traders remain wary ahead of tonight's US gross domestic product (GDP) data for the September quarter, dealers said. At 1.47 pm here (0347 GMT) the US dollar was trading at 118.50 yen, down from 118.61 in morning trade, while the euro was at 1.2702 usd, up from 1.2689. CMC Markets' chief currency analyst Ashraf Laidi sa ...

- ---- by Yasuhiko Seki ---- TOKYO (XFN-ASIA) - Japan's core consumer price index in September rose slower than market predicted, and economists say this may be a sign that the Bank of Japan should not rush another hike in interest rates with the economic recovery fragile and price rises tepid. Earlier this month, BoJ governor Toshihiko Fukui said he is not ruling out the possibility of another ...

LONDON (AFX) - UK CPI inflation is set to remain well above target during the fourth quarter, necessitating another two rises in interest rates by early next year, while economic growth remains around its trend rate, a leading UK think-tank said. The National Institute for Economic and Social Research estimates that annual CPI inflation will stand at 2.6 pct during the fourth quarter of 2006, wel ...

NEW YORK (AFX) - A top Federal Reserve official said Thursday the central bank must remain to committed to containing inflation in a world made more challenging by increasing global financial and economic integration. "In today's rapidly evolving global economy, monetary policy-makers cannot ignore the international dimension," Federal Reserve Bank of New York President Timothy Geithner ...