<![CDATA[Hedgehogs.net: '' related content (page 2)]]> http://www.hedgehogs.net/tag/bank?offset=10 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358205/things-worth-reading-15th-august-2014 Fri, 15 Aug 2014 10:04:16 +0100 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358205/things-worth-reading-15th-august-2014 <![CDATA[Things worth reading: 15th August 2014]]>

Things we're reading today include ...

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]]> 11358205 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358201/society-is-so-digital-we-do-more-with-devices-than-with-each-other Fri, 15 Aug 2014 08:54:11 +0100 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358201/society-is-so-digital-we-do-more-with-devices-than-with-each-other <![CDATA[Society is so digital, we do more with devices than with each other]]>

Talking of how fast things change, here are a few Friday facts to make you smile (or feel ill).

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]]> 11358201 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358198/things-worth-reading-14th-august-2014 Fri, 15 Aug 2014 08:54:04 +0100 http://www.hedgehogs.net/pg/blog/skinnercm/read/11358198/things-worth-reading-14th-august-2014 <![CDATA[Things worth reading: 14th August 2014]]>

Things we're reading today include ...

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]]> 11358198 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358187/sri-lanka-maintains-rates-on-benign-inflation-outlook Fri, 15 Aug 2014 04:53:33 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358187/sri-lanka-maintains-rates-on-benign-inflation-outlook <![CDATA[Sri Lanka maintains rates on benign inflation outlook]]>     Sri Lanka's central bank maintained its policy rates, saying the outlook for inflation remains benign due to stable international commodity prices, contained demand pressures and inflation expectations.
    However, the Central Bank of Sri Lanka, which has kept rates steady since October 2013 when it last reduced rates, added that supply disturbances triggered by adverse weather could cause temporary price fluctuations.
    The central bank held its Standing Deposit Facility Rate (SDFR), which has replaced the repo rate as a benchmark, steady at 6.50 percent and the Standing Lending Facility Rate (SLFR) at 8.0 percent.
    Sri Lanka's headline inflation rate rose to 3.6 percent in July from 2.8 percent in June due to higher food prices from adverse weather conditions. But it still remains below the central bank's 2014 target of 4-6 percent inflation. In 2015 and 2016 the central bank will target inflation of 3-5 percent.
    Core inflation in July rose to 3.7 percent from 3.5 percent the previous month.
    Data for the first half of the year indicate that economic growth this year is likely to remain broadly on target though nominal Gross Domestic Product growth is expected to be lower than the initially projected rate of 14.3 percent due to the low inflation environment, the bank said.

    In the first quarter of this year, Sri Lanka's GDP rose 7.6 percent from the same quarter last year, down from a rate of 8.2 percent in the previous quarter. In June the central bank forecast growth this year of 7.8 percent, up from 7.3 percent in 2013.
    Broad money in Sri Lanka grew by an annual 13.3 percent in June, up from 13.0 percent in the previous month and credit obtained by the private sector is expected to increase gradually with high levels of liquidity in domestic money markets, low short term lending rates and declining long rates.
    For the full year, the central bank forecast that broad money would expand by around 13 percent on an annual basis by end-2014, down from a previously expected 14 percent.
    A favorable development in exports seen in June is expected to continue for the rest of this year. Higher inflows attributed to rising workers' remittances and receipts from tourism, along with a lower trade deficit has positively impact the current account.
    Earlier this month the central bank said gross official reserves on Aug. 8 topped US$9 billion for the first time in the country's history and currently stand at $9.2 billion, the bank said. The central bank has said it aims to boost reserves to $10 billion by the end of this year.
    So far this year, the central bank has purchased over $1 billion from the domestic foreign exchange market on a net basis.
    Earlier this month, Ajith Nirvard Cabraal, the central bank governor, told Reuters that there is a greater change of a rate cut than an increase following a report by the International Monetary Fund that called for keeping rates on hold for the near term.
    The IMF forecast 2014 GDP growth of 7.0 percent and average headline inflation of 3.8 percent, down from 2013's 6.9 percent.

    www.CentralBankNews.info


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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358181/chile-cuts-rate-by-25-bps-will-consider-further-cuts Thu, 14 Aug 2014 23:43:30 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358181/chile-cuts-rate-by-25-bps-will-consider-further-cuts <![CDATA[Chile cuts rate by 25 bps, will consider further cuts]]>     Chile's central bank cut its monetary policy rate by another 25 basis points to 3.50 percent, as expected, and repeated the guidance from July that it "will consider the possibility of making additional cuts to the monetary policy rate in line with the evolution of domestic and external macroeconomic conditions and its implications for the inflationary outlook."
    The Central Bank of Chile, which has now cut its rate by 150 basis points since October last year, said "local economic indicators show that the pace of expansion of output and demand has slowed more sharply than expected" and a drop in investment has been compounded by a more marked slowdown in private consumption.
    The rate cut was expected by economists despite an uptick in inflation, partly due to a depreciation of the Chilean peso currency. A recent poll of economists shows that they expect the central bank to cut rates further to 3.0 percent by end-2014.
    Chile's headline inflation in July rose to 4.5 percent from June's 4.3 percent, with core inflation rising to 4.0 percent from 3.8 percent. The central bank targets inflation at a midpoint of 3.0 percent within a one percentage point tolerance range plus or minus.

    In March the central bank forecast that inflation would end this year around 3.0 percent, with a temporary rise to between 3.5 and 4.0 percent, up from average 2013 inflation of 1.8 percent.
    The central bank said medium-term inflation expectations remain around 3 percent and the most likely scenario continues to assume that inflation will stay above the upper bound of the bank's tolerance range for some months before returning to the target.
   "This evolution will continue to be monitored with special attention," the bank said, adding that annual growth in nominal wages had accelerated and the unemployment rate remains low despite signs of less dynamism in the labor market.
    Chile's unemployment rate rose to 6.45 percent in June from 6.28 percent in May.
    Gross Domestic Product expanded by 0.7 percent in the first quarter from the previous quarter for annual growth of 2.6 percent, down from 2.7 percent in the fourth quarter and well below growth rates of above 5 percent in recent years.
    The peso was quoted at 577.7 to the U.S. dollar today, down 10 percent since the start of the year.
 
    www.CentralBankNews.info

  

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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358149/uganda-maintains-rate-and-economic-forecasts Thu, 14 Aug 2014 13:33:32 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358149/uganda-maintains-rate-and-economic-forecasts <![CDATA[Uganda maintains rate and economic forecasts]]>     Uganda's central bank maintained its benchmark Central Bank Rate (CBR) at 11.0 percent, along with its other rates, saying its current stance is appropriate to "foster sustainable growth in demand and inflation outcomes consistent with the medium term target of 5 percent."
    The Bank of Uganda (BOU), which cut its rate by 50 basis points in June and said it may need to reduce rates further, said today that its economic forecasts had remain unchanged and core inflation was forecast to remain in a range of 4 to 5 percent in the third quarter and rise to 5.5 to 6.5 percent over the next 12 months.
    Uganda's headline inflation rate eased to 4.3 percent in July from 5.0 percent in June due to a 5.1 percent drop in food prices. Core inflation averaged 3.1 percent in July, well below the BOU's target, though it picked up slightly in the last three months due to exchange rate depreciation.
    BOU said latest economic data shows continued favorable performance with growth in fiscal 2014/15 projected in a range of 5.5 to 6.5 percent as expansionary fiscal conditions are reflected in strengthening private consumption.

    "Going forward, I expect economic growth momentum to be sustained, anchored by domestic demand with additional support from the improved external environment," the bank said, quoting its governor, Emmanuel Tumusiime-Mutebile.
   Key domestic uncertainties remain the timing and extent of a pickup in domestic investment and the prospects for export demand, with the possibility that consumption and investment could be stronger than expected.
   External risks include the considerable degree of uncertainty surrounding the outlook, with growth prospects for 2014 weaker than earlier expected but momentum is expected to improve in 2015.
    "Financial and commodity markets also remain vulnerable to instability as geopolitical risks remain elevated," BOU said.

    www.CentralBankNews.info

 

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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358144/indonesia-holds-rate-steady-as-ca-deficit-widens Thu, 14 Aug 2014 13:13:31 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358144/indonesia-holds-rate-steady-as-ca-deficit-widens <![CDATA[Indonesia holds rate steady as C/A deficit widens]]>     Indonesia's central bank held its benchmark BI rate steady at 7.50 percent, as expected, repeating that its current policy stance is consistent with efforts to steer inflation toward its 2014 and 2015 targets and to lower the current account deficit to a more healthy level.
    Bank Indonesia (BI) has maintained its rates since November 2013 after raising them by 175 basis points last year in response to inflationary pressures, a depreciation of the rupiah currency and a wide current account deficit.
    BI said its aim of achieving a more balanced economy was reflected in the downward trend in demand and inflation while the current account deficit increased more than expected in the second quarter, partly due to seasonal patterns.
    However, BI also pointed to a number of external and domestic risks that it said may interfere with it reaching its inflation target and goal of improving the current account.
    "Looking ahead, there are a number of global risks that we need to be wary of, among other things, the normalization of Fed policy and the Bank of England, and the risk of spillovers and spillback from the weakening economy of emerging markets," BI said.

    Among the domestic risks is moderate economic growth, particularly the decline in domestic demand though exports have improved.
    BI maintained its forecast for the economy to expand between 5.1 and 5.5 percent this year, below growth rates of above 6 percent from 2010-2012. In 2013 the economy expanded by 5.8 percent.
    In the second quarter of this year, Indonesia's Gross Domestic Product expanded by 2.47 percent from the first quarter but compared with the second quarter of 2013, the growth rate eased to 5.12 percent from 5.22 percent, continuing the trend of declining growth. The slowdown was due to weak exports of natural resources, such as coal, palm oil and minerals.
    Indonesia's second quarter current account deficit widened to US$9.1 billion, or 4.27 percent of GDP, from $4.2 billion, or 2.05 percent of GDP in the first quarter, but narrowed from a deficit of $19.1 billion, or 4.47 percent of GDP, in the second quarter of 2013.
    Earlier this year, the central bank had forecast the current account deficit would narrow to below 3 percent of GDP from 3.3 percent in 2013.
    "The increase in the non-oil trade balance surplus has not been able to offset the increase in the oil and gas trade balance deficit," BI said. Exports of commodities to emerging economies have slowed while exports of manufacturing goods, such as automotive, textile and apparel, to developed countries, had increased. Imports of consumer goods and oil had risen.
    The surplus in the capital and financial accounts rose substantially in the second quarter due to high inflows of portfolio investment from foreign investors, pushing up the country's foreign exchange reserves to $110.5 billion, or the equivalent of 6.4 months.
    Indonesia's inflation rate fell sharply to 4.53 percent in July from 6.7 percent in June, supporting the central bank's aim of reducing inflation to 4.5 percent, plus/minus one percentage point, in 2014 and its 2015 goal of 4.0 percent, plus/minus one percentage point.
    Among the risks, BI noted increases in administered prices, such as electricity tariffs and food.
    The rupiah currency weakened by 4.18 percent in the second quarter of this year to 11,855 per U.S. dollar from the second quarter of last year, BI said. Today, the rupiah was trading at 11,669 to the dollar, up from 12,160 at the start of the year.

    www.CentralBankNews.info

 

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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358131/korea-cuts-rate-25-bps-on-sluggish-demand-investment Thu, 14 Aug 2014 06:13:30 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358131/korea-cuts-rate-25-bps-on-sluggish-demand-investment <![CDATA[Korea cuts rate 25 bps on sluggish demand, investment]]>     South Korea's central bank cut its base rate by 25 basis points to 2.25 percent, as expected, and said it would closely monitor external risks, such as shifts in the monetary policies of major countries, changes in investors' sentiment,  movements in economic indicators, including the trend in household debt, along with the impact of the rate cut and government policies.
    The Bank of Korea (BOK), which cut its rate by 25 basis points last year, also said exports had maintained their buoyancy but "improvements in domestic demand, which had contracted mainly due to the impacts of the Sewol ferry accident, have been insufficient, and that the consumption and investment sentiments of economic agents also continue to show sluggishness."
    The rate cut was widely expected due to weak consumer demand following the sinking of the Sewol ferry on April 16. The government has announced an 11.7 trillion won boost in spending and on July 20 a joint statement by Finance Minister Choi Kyung-hwan and BOK Governor Lee Ju-yeol called for harmony between economic and monetary policies.

    Last month the BOK cut its growth forecast for this year to 3.8 percent from a previous 4.0 percent and the 2015 growth forecast to 4.0 percent from 4.2 percent and lowered its inflation projection to 1.9 percent from 2.1 percent.
    South Korea's Gross Domestic Product expanded by 0.6 percent in the second quarter from the first quarter for annual growth of 3.6 percent, down from 3.9 percent.
    The headline inflation rate eased to 1.6 percent in July, down from 1.7 percent in June, while core inflation rose by 2.2 percent, up from 2.1 percent. The unemployment rate in July fell to 3.4 percent from 3.6 percent the previous month.
    "The Committee expects that the negative output gap in the domestic economy will gradually narrow going forward, although the pace of narrowing will be moderate," the BOK said, repeating its statement from last month.  

    www.CentralBankNews.info



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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358112/central-bank-news-link-list-aug-13-2014-boe-focuses-on-weak-wages-rate-rise-lower-on-agenda Thu, 14 Aug 2014 00:03:29 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358112/central-bank-news-link-list-aug-13-2014-boe-focuses-on-weak-wages-rate-rise-lower-on-agenda <![CDATA[Central Bank News Link List - Aug 13, 2014 - BOE focuses on weak wages, rate rise lower on agenda]]>
Here's today's Central Bank News' link list, click through if you missed the previous link list. The list comprises news about central banks that is not covered by Central Bank News. The list is updated during the day with the latest developments so readers don't miss any important news.

          www.CentralBankNews.info


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http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358087/georgia-maintains-rate-exit-from-easy-policy-to-take-time Wed, 13 Aug 2014 22:43:41 +0100 http://www.hedgehogs.net/pg/blog/CentralBankNews/read/11358087/georgia-maintains-rate-exit-from-easy-policy-to-take-time <![CDATA[Georgia maintains rate, exit from easy policy to take time]]>     Georgia's central bank maintained its monetary policy rate at 4.0 percent and said an exit from its accommodative policy stance is still necessary but "recent forecasts suggest that the process will take more time than originally predicted."
    The National Bank of Georgia (NBG) began tightening policy in February when it rates its policy rate by 25 basis points, but since then "certain risks have materialized that have caused insufficient growth of both domestic and external demand, thus slowing the process of inflation reaching its medium term target."
    "The dynamics of further monetary policy changes will depend on the dynamics of expected inflation, tendencies of economic growth, and the global and regional economic environment," the central bank said.
    Among the risks that central bank has faced in tightening policy its the fallout from the conflict between Russia and Ukraine. Georgia borders the Black Sea to the west, Russia to the north and Turkey and Azerbaijan to the south.
    The central bank forecast that inflation will gradually reach 4.0 percent by the end of this year and reach the bank's target of 5.0 percent in the first half of 2015.

    Georgia's inflation rate rose to 2.85 percent in July from 2.0 percent in June, slightly below expectations. In 2013 the central bank cut its policy rate by 150 basis points as it experienced deflation in most of 2012 and 2013.
    An exit from its current accommodative policy stance is not considered to limit economic activity as the policy rate will remain below a neutral level, the bank said.
    "So long as new information revealed in coming periods does not affect the current forecasts and no new shocks to the economy materialize, the policy rate, along with the revival of economic growth, will gradually approach its neutral level and reach 6.0% by the end of 2015," the bank said.
    Georgia's Gross Domestic Product grew by 6 percent in the first half of the year, mostly driven by domestic demand, the bank said. External demand remains weak, illustrated by low exports in July and external demand remains a risk factor in light of the regional situation.
    "In the event of a further decrease, this will push down both economic growth and inflation," the central bank said about external demand.
    The International Monetary Fund forecast growth this year of 5.0 percent and the same in 2015, up from 3.2 percent in 2013. Inflation is forecast to average 4.6 percent in 2014 and 4.9 percent in 2015 up from deflation of 0.5 percent in 2013 and 0.9 percent in 2012.

    www.CentralBankNews.info

 

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