Pages

Sunday, April 10, 2011

Economic Updates

Weekly Economic Update
by IndoPremier Securities

SUMMARY

Global Economy

The European Central Bank and the People’s Bank of China increased their key policy rates, aiming at reducing inflationary pressures. The Bank of Japan nonetheless clanged to its ultra-loose monetary policy to assist the economy stricken by last month’s earthquake and tsunami.

Portuguese government said it has decided to make a request for financial aid to the European Commission. The bailout fund was said to amount as much as 75 billion euros.

Fitch Ratings upgraded Brazil’s sovereign rating by a notch to BBB. Outlook for the rating was revised from positive to stable. The rating action reflects an increase in the country’s potential economic growth to 4%–5% which supports its medium-term fiscal outlook and external liquidity position.

Indonesia Economy

Bank Indonesia said core inflation is unlikely to rise significantly given the gain in rupiah. The bank added that the currency might appreciate further. Given improving inflation outlook for 2011, we expect the BI rate to be maintained at 6.75% in monetary policy meeting next week.

No comments:

Post a Comment