Sponsored Links
Japan, China and South Korea agree that it is too early to stop stimulus programs that were introduced to underpin their economies amid the global recession, Japanese Prime Minister Yukio Hatoyama said Saturday. He spoke after holding a trilateral meeting with Chinese Premier Wen Jiabao and South Korean President Lee Myung-bak in Beijing.
These comments comes at the end of a week which saw some countries moving towards ending stimulus measures, while others debate on the timing of exit. On October 6, Australia became the first G-20 member nation to hike its benchmark interest rate since the onset of the financial crisis in late 2008, indicating that a global recovery is underway. The Reserve Bank of Australia surprisingly raised its interest rate by 25 basis points to 3.25% from a 49-year low.
Following the Australian central bank's hawkish move, some economists were looking forward to a similar action from the Bank of Korea. However, the South Korean central bank kept interest rates on hold for the eighth consecutive month on Friday, maintaining the record low of 2%.
In Europe, the European Central Bank and the Bank of England also left their key interest rates unchanged during the week. The UK central bank also decided to maintain its asset purchase scheme. The central bank is widely expected to raise the size of the scheme when it comes up for review in November.
On October 4, the International Monetary Fund's policy steering committee said it remained committed to maintaining stimulative measures until the world economic recovery was assured. "Exit strategies are being discussed, but they are nowhere near being implemented now until we firm up the recovery in the world economy," Egyptian Finance Minister Youssef Boutros-Ghali, who heads the committee, said.
0 komentar:
Post a Comment