Economic News

(updating with Riksbank economic and repo rate forecasts, comments) STOCKHOLM (Thomson Financial) - The Riksbank said it has raised its key repo rate by 25 basis points to 4.00 pct, and reiterated that the interest rate needs to be raised further in the future. "During the first half of 2008 the repo rate is expected to be around 4.25 pct. The Riksbank's view of the future repo rate path re ...

LONDON (Thomson Financial) - The Swedish krona rose after the Riksbank raised its key repo rate by 25 basis points to 4.00 pct as expected and reiterated that rates will need to rise again during the first half of next year. Explaining the move, the central bank cited strong growth and rising employment levels, as well as "rapid" increases in lending and house prices, which are leading  ...

LONDON (Thomson Financial) - The dollar is relatively steady above yesterday's all-time record low against euro ahead of tomorrow's interest rate decision from the US Federal Reserve. Dollar sentiment has been particularly bearish in the run-up to the meeting as the markets priced in the possibility of a half point cut in the Fed funds rate to 4.25 pct. However, that has changed now and the marke ...

(Updating to add further analyst comment) LONDON (Thomson Financial) - The Swedish krona rose after the Riksbank raised its key repo rate by 25 basis points to 4.00 pct as expected and reiterated that rates will need to rise again during the first half of next year. Explaining the move, the central bank cited strong growth and rising employment levels, as well as "rapid" increases in l ...

KUALA LUMPUR (Thomson Financial) - Malaysia's central bank said Tuesday it has decided to leave the overnight policy rate unchanged at 3.50 percent as the country's economic fundamentals remain sound with sustained growth in domestic demand. Bank Negara said while downside risks to global growth have increased due to higher oil prices and the uncertainty in global financial markets, it expects th ...

TOKYO (Thomson Financial) - Japanese government bond prices closed mixed Tuesday as investors remained cautious ahead of a Federal Reserve interest rate decision on Wednesday. The Fed is widely expected to cut the fed funds rate by 25 basis points. The Bank of Japan, which also meets Wednesday, is expected to leave its overnight call rate target unchanged at 0.5 percent. "There was a market ...

MANILA (Thomson Financial) - The Philippines' annual inflation rate is expected to come in between 2.5 percent and 3.0 percent in October, reflecting higher food and oil prices, central bank governor Amando Tetangco Jr said Tuesday. Inflation in September stood at 2.7 percent, bringing the average inflation rate for the first nine months of the year to 2.6 percent -- still within the central bank ...

WARSAW (Thomson Financial) - Poland's new government should consider changes to the central bank's policy mandate if it does not do more to support growth, an official from likely junior coalition partners the Peasants Party was quoted as saying. Speaking to Puls Biznesu, Marek Sawicki, expected to be made farm minister in the new cabinet, said that Polish interest rates were too high and support ...

HONG KONG (Thomson Financial) - The US dollar recovered slightly against the euro in afternoon trade in Asia on Tuesday as investors exercised caution ahead of the Federal Reserve meeting beginning tonight. "The market has priced in a Fed rate cut, but there is a possibility that they would stay neutral," said David Mann, currency strategist at Standard Chartered Bank. "The risk of ...

SINGAPORE (Thomson Financial) - Singapore's economic growth is expected to slow to 4-6 percent in 2008 from 7-8 percent this year as strong domestic demand is offset by the impact of slower US economic growth, the Monetary Authority of Singapore (MAS) said Tuesday in its semi-annual macroeconomic review. The probability of a recession in the US remains low as the effects of the subprime lending c ...