Tuesday, December 21, 2010

Worries about inflation rate hike India Aoyangxing sync upgrade

This week, the central banks yixi Opera turns. The results of the Federal Reserve announced before, yixi yesterday India and Australia's central bank interest rate announced coincidentally, two of the Bank's stance also enables global market consistent feel: inflation is coming.

India's central bank interest rate six times during the year

The Fed will soon introduce a new round of quantitative easing measures, some parts of the world are at greater risk of inflation. Is to promote economic growth, or suppression of price increases, as emerging economies face common challenges. In line with market expectations, India's Central Bank will repurchase and reverse repurchase the increase in interest rates by 25 basis points, respectively to 6.25% and 5.25%, this is India's Central Bank raised this year for the sixth time the reference interest rate.

India Government previously published data shows that India is a group of twenty worst inflation in the country, its September overall inflation rate 8.62%, much higher than India's Central Bank set up by 5% to 6%.

India's Central Bank in the previously released the report noted that, despite repeated increases in this year, but the benchmark interest rate is still higher than inflation level range. India's central bank interest rate initiatives reflect the balance between economic growth and inhibition of prices by a cautious approach. India's Finance Minister Al-Haj is expected to rise again, the Bank will further reduce the already falling, while inflation will allow economic growth track.

India's Central Bank yesterday in monetary policy review report pointed out that the Central Bank has been according to India's economic growth and inflation take prudent monetary policy, monetary policy over the next six months will focus on domestic economic growth slowdown in the global recovery, the buffer continues to inhibit demand inflationary pressures. India's Central Bank Governor Su balao indicates that, based on the exchange rate and inflation trends, India's Central Bank further change in the short term interest rates.

Australia surprise interest rate increase

And India's Central Bank, Australia's central bank interest rate move came as a surprise to the market. Australia Bureau of statistics announced last week, the third quarter of the consumer price index (CPI) rose 2.8%, lower than market expectations, and an increase from the previous quarter 3.1% down to the Central Bank set up by 2% to 3% of the target range. Market participants generally expect that before Australia's Central Bank will be closed on the rise.

However, Australia's Central Bank announced yesterday, will once again rise from 4.5% benchmark interest rate to 4.75%, this is Australia's Central Bank almost 6 months since the first time. The reason for the interest rate, Australia central bankers Stevens said the inflation risk still exists, this interest rate increase was mainly in response to the mining industry could result in increased inflationary pressures. In the present case, the prudent monetary policy is a wise move.

Australia's Central Bank in the following statement also noted that, despite the global economic growth will slow down, but the medium-term inflation risks have increased, Australia previously appeared in inflation slowdown is nearing completion. Some analysts said that Australia is part of the resource, the resource prices while allowing the benefit, but also to increase its investment and inflation pressure. Nomura Chief Economist Roberts said that Australia's central bank interest rate action, with the aim of "pre-emptive", is expected in December, the row will rise again.

Australia's Central Bank left the interest rate which promote AUD, in the Asian trading session yesterday, the Australian dollar against the US dollar parity gate, breakthrough for nearly 28 years. Some analysts said the interest rate will surely attract hot money to speed up the flow of the Australian dollar trend forming support, including JP Morgan, a number of investment banks are optimistic about AUD trend.

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