KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has affirmed Malaysia’s sovereign rating of ‘AAA’ with a stable outlook, but cautioned that its fiscal and debt management performance remains “rating constraints”. In a statement released today, the rating agency said the triple-A rating reflects the resilience of the Malaysian economy, its effective monetary policy, as well as healthy external position. However, the rating strengths are tempered by persistent fiscal deficits, high government debt and rising contingent liability, as well as high household debt. “The stable outlook is based on the expectation that the new administration will continue implementing the governance and institutional reforms it promised in the run-up to the May 2018 election. We are, nevertheless, cautious about the risks posed by rising geopolitical and geo-economic uncertainties,” MARC said. It highlighted that Malaysia’s resilient economy, underpinned by a … [Read more...] about MARC affirms Malaysia’s sovereign rating at ‘AAA’
High rates of inflation
Low inflation rate due to Pres. Du30
Low inflation rate due to Pres. Du30 SHOOTING STRAIGHT - Bobit S. Avila (The Philippine Star) - May 9, 2019 - 12:00am Wing news is that inflation in the Philippines slowed to a 16-month low of 3.0 percent in April on lower food prices as the government implemented a law easing restrictions on rice imports to avoid the supply shortage that spiked consumer prices last year. However, there is a warning that inflation could rise again on the volatile crude oil prices and pressure on food prices due to the prolonged dry weather. The figures that we got came from the Philippine Statistics Authority (PSA) when it released its monthly Consumer Price Index report last Tuesday. The government also pointed out that a prolonged El Niño weather phenomenon and a continued increase in global crude oil prices could push up consumer prices in the near term, while the Central Bank noted that slower global growth could also exert downward … [Read more...] about Low inflation rate due to Pres. Du30
News Fed opens meeting as Trump calls for deep rate cut
WASHINGTON -- The US central bank opened its third policy meeting of the year on Tuesday under renewed attack from President Donald Trump, who called on officials to reverse course and cut interest rates. Trump slammed the Federal Reserve for "incessantly" raising interest rates and said cutting rates by a full percentage point would make the economy surge. The Fed raised rates 4 times last year -- and has done so a total of nine times since December 2015 -- moving from zero in the aftermath of the global financial crisis to the current range of 2.25 percent to 2.5 percent. But this year the Fed has been on hold and signaled clearly that it has no intention of moving monetary policy anytime soon as it grapples with conflicting signs on the economy. Trump's call for a rate cut of a full point would reverse all of the Fed moves last year and likely undermine any credibility the central bank has with financial markets. And if Trump continues to browbeat the Fed in public comments, central … [Read more...] about News Fed opens meeting as Trump calls for deep rate cut
BSP pegs April inflation at 2.7%-3.5%
BSP pegs April inflation at 2.7%-3.5% (Philstar.com) - April 30, 2019 - 8:27pm MANILA, Philippines — The Bangko Sentral ng Pilipinas on Tuesday said it expects another month of benign inflation in April on the back of falling rice prices and a stronger peso that likely cushioned the impact of high local pump prices and power rates. In a statement, the BSP’s Department of Economic Research pegged April inflation at 2.7%-3.5% range. “Higher domestic oil prices and the slight upward adjustment in electricity ratesare seen to provide upside price pressures for the month,” the central bank unit said. “However, these pressures may be partially offset by the continued decline in rice prices and by the peso appreciation,” it added. “Moving forward, the BSP will continue to closely monitor evolving price trends and will undertake necessary measures towards its commitment to price … [Read more...] about BSP pegs April inflation at 2.7%-3.5%
Strong US growth, weak inflation leave Fed stuck happily on hold
WASHINGTON: The Federal Reserve is expected to hold interest rates steady at its policy meeting this week as policymakers balance recent stronger-than-expected U.S. economic growth against sluggish inflation.Officials have given no signal in recent weeks of any change to the U.S. central bank's benchmark overnight lending rate, currently set in a range of 2.25 percent to 2.50 percent. Markets have bet heavily the Fed's "patient" approach means just that - with rates on hold until a run of good or bad news about the economy provides a compelling reason to move.Data compiled by CME Group put the odds the Fed leaves rates unchanged this week at 97 percent."We do not expect a big change in tone," compared to the Fed's mid-March policy statement, with policymakers likely to be "more upbeat on growth, though with a more cautious reading of recent inflation developments," JP Morgan economist Michael Feroli wrote in a preview of this week's meeting.The policy-setting Federal Open Market … [Read more...] about Strong US growth, weak inflation leave Fed stuck happily on hold