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46 minutes ago

The Bank of Korea keeps interest rates on hold for the third time in a row

The Bank of Korea kept its benchmark interest rate on hold at 3.50% for the third time in a row on Thursday.

The decision was in line with a consensus forecast among economists polled by Reuters, who expected the central bank to hold off.

Earlier this month, the central bank chief told CNBC it was “premature” to discuss a rate cut, citing the country’s inflation rate, which is still above the Bank of Korea’s 2% target.

South Korea is set to release its consumer price index for May next Friday.

32 minutes ago

The Bank of Korea expects to start cutting interest rates early next year, Deutsche Bank reports

The Bank of Korea is expected to start cutting its benchmark interest rate early next year, said Juliana Lee, head of APAC economic research at Deutsche Bank.

Lee added that he expects the central bank’s policy focus to come in conjunction with the US Federal Reserve.

“There are some signs that it (exports) has bottomed out in terms of a decline, but in terms of a recovery we don’t expect until the fourth quarter, hence why we have a more bearish view on growth than the central one.” bank,” Lee told CNBC’s “Squawk Box Asia.”

Lee added that he expects the South Korean won to remain broadly unchanged until the central bank starts cutting interest rates.

– Jihe Lee

47 minutes ago

Indonesia will hold interest rates for the third time

Indonesia’s central bank is expected to keep its 7-day reverse repo rate at 5.75%, according to economists polled by Reuters.

Economists also predict that the Central Bank will keep the deposit rate at 5.00% and the lending rate at 6.50%.

The move would mark the third consecutive pause for Bank Indonesia, as the country recorded inflation of more than 4% in April. The country publishes the next month’s May inflation rate.

An hour ago

South Korea’s producer price index rose 1.6% in April

South Korea’s producer price index rose 1.6% year-on-year in April, down from a 3.3% gain the previous month.

Government data showed the national producer price index fell 0.1% on a monthly basis, after seeing a 0.1% increase in March.

The PPI measures the change in prices that domestic producers receive for their goods and services.

The South Korean won weakened by 0.11% to 1,319.66 against the US dollar on Thursday morning.

– Jihe Lee

7 hours ago

Fed officials are uncertain whether more rate hikes are needed, the minutes show

The Fed’s minutes showed “uncertainty” among participants about raising interest rates for an 11th time at its June meeting.

On the record, there were now two camps at the Fed. One panel, which contained “some” members, assessed that progress in reducing inflation was “unacceptably slow” and would require further growth. Another, backed by “several” FOMC members, noted a slowdown in economic growth in which “further policy tightening may not be necessary after this meeting.”

Protocols do not identify individual members, nor do they quantify “some” or “few” with specific numbers. However, in Fed parlance, “some” counts as more than “a few.”

Bottom line, the minutes indicated that the Fed will closely monitor incoming data before deciding whether to raise interest rates again on June 14.

– Jeff Cox, John Malloy

Correction: In Fed parlance, “some” counts as more than “a few.” An earlier version misstated the difference.

9 hours ago

Fed’s Waller stresses ‘flexibility’ for June rate decision

Referring to the three-pronged question facing US central bankers, Federal Reserve Chairman Christopher Waller said it was too early to say which choice was right. The data in the coming weeks before the June 13-14 meeting will determine the right path, he said.

While Waller argued that the Fed should “retain flexibility” on whether to hike, hold off or skip June, with the inclination to raise rates in July, he expressed doubt that the Fed has gone far enough in its fight against inflation. , as needed. .

“I don’t expect the data coming in over the next few months to make it clear that we’ve reached a terminal rate,” Waller said in prepared remarks for a speech in Santa Barbara, California.

“And I don’t support stopping interest rate hikes until we get clear evidence that inflation is coming down to our 2% target. ” he added.

– Jeff Cox

9 hours ago

House Speaker McCarthy reaffirms confidence in preventing default

House Speaker Kevin McCarthy reiterated that negotiators must reach a resolution on the debt ceiling, even as lawmakers struggle to agree on base spending.

“We are not preparing for default,” he said during a press conference on Wednesday. “We are going to solve this problem. I’ll stick with it until we get there. But let’s be honest about this. We had to spend less than we spent last year. It’s not my fault the Democrats can’t deliver. at their expense.”

– Samantha Subin, Sarah Min

15 hours ago

Negotiators meet again on Wednesday morning

Negotiators from both sides of the debt ceiling talks were expected to meet again on Wednesday morning, Reuters reported, citing a source familiar with the matter.

Stocks fell on Tuesday after negotiators for President Joe Biden and House Speaker Kevin McCarthy made no significant progress on the day.

Any deal could take up to a week to be written and passed through Congress, a Reuters report said, raising the stakes to reach a deal in the next few days ahead of a June 1 deadline for the Treasury to default.

– John Malloy

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