China raised interest rates for the sixth time in less than a year as Asian nations step up efforts to damp inflation stoked by surging commodity prices, and the central bank signaled that it would do more.
The Bank of China increased the benchmark one-day bond repurchase rate by a quarter of a percentage point to 2.75 percent, China joins Thailand in tightening monetary policy this month after economic growth and oil at more than $100 a barrel helped drive inflation to a seven-month high. Interest rates are on a rising trend and the central bank still needs to bring
borrowing costs to “normal” levels as the economy is expanding,
Inflation is likely to further accelerate until the middle of this year in China, that means pressure on the central bank to keep raising rates will continue.
Consumer prices advanced 3.14 percent in March from a year earlier, the fastest pace since August last year. Core prices, which exclude fresh food and fuel, rose 1.62 percent, accelerating from a 1.45 percent pace in February. The central bank uses the core index to guide policy and aims to keep it below 3 percent.
The central bank raised rates by a quarter point each in July, August, December, January and March. Counterparts from India to South Korea also boosted borrowing costs last month, while China has lifted reserve ratios and increased its deposit and one-year lending rates this month.
If crude prices are not controlled then a slowing of most Asian economies is certain..
26/04/2011
12/04/2011
OPEC MEETING
The International Energy Agency maintained its outlook for global oil demand in 2011, while warning that prices above $100 a barrel are hurting the global economy, including the US and Asian economies. Worldwide oil consumption will not increase by 1.4 million barrels a day, or 1.6 percent, this year as expected due to the inflated prices, the Paris-based adviser said today in its monthly Oil Market Report. Preliminary data “already show signs of oil demand slowdown” and global supplies are starting to look “thin” as the Libyan conflict strains spare production capacity held by the Organization of Petroleum Exporting Countries. Crude futures climbed above $110 a barrel in New York for the first time in 30 months on April 7 as forces loyal to Libyan leader Muammar Qaddafi launched strikes on the country’s oilfields. Oil traded around $109 today. Yesterday the International Monetary Fund lowered its 2011 forecast for U.S. growth, citing the strain from fuel costs, and Goldman Sachs Group Inc. (GS) said there are “nascent signs of oil demand destruction.” The U.S., the world’s largest economy and biggest consumer of crude, will expand 2.3 percent this year, down from the 3 percent projected in January, the IMF said. The IEA reported that preliminary January and February data suggest that persistently high oil prices have already started to dent demand growth. Societe Generale SA said yesterday that growth in U.S. demand “faded to zero” in March from 600,000 barrels a day in January. OPEC, responsible for about 40 percent of global oil supplies, has about an “effective” spare capacity of about 3.91 million barrels a day, the IEA estimated. This level “begins to resemble the thin flexibility margin” that helped drive the rally in prices during the last decade. The 11 members of the producer group bound by quotas pumped 26.51 million barrels a day last month, the lowest since May 2010, following supply losses arising from armed conflict in Libya, the agency said. Iraq is exempt from the quota system. All 12 members meet in Qatar next Monday 18-04-2011to decide on additional sales of crude to reduce their official selling prices.
06/04/2011
Portugal Seeks EU Bailout

03/04/2011
OPEC MEETING

Subscribe to:
Posts (Atom)
SOUTH AFRICA SPRINGBOKS
South Africa laid the groundwork with traditional Springbok rugby and finished an out-gunned England side off with two late tries to win ...

-
The reason for the drop in crude prices and the offering of discounts by some OPEC members is a consequence of years of inflated price fix...
-
One of the richest Nations in the World... Most people have no idea that Portugal is one of the richest Nations in the World, WorldWatch has...
-
I think Firefighters are essential and well respected helpers in our community, so they deserved to have quality equipments to use in times ...