BI lowers intervention rate
BI lowers intervention rate
JAKARTA: Indonesia's central bank said Wednesday it has cut
its overnight intervention rate, which is the rate it pays on
deposits from commercial banks, by 100 basis points to 12.625
percent from 13.625 percent.
Bank Indonesia's latest effort to guide rates lower comes amid
a reduction in inflationary pressures in recent months.
On-year inflation fell to 10.50 percent in July from 11.48
percent in June.
The government needs lower interest rates to reduce the cost
of funding the state's huge debt, which at $130 billion is equal
to the country's gross domestic product last year.
Interbank rates have also fallen with the cut in the
intervention rate. The overnight interbank rate is now at 13
percent, much lower than 13.87 percent at the open.
;Agencies;
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MoneyMatter-Japan-industrial
Japan industrial index falls 1%
JP/16/Money
Japan industrial index falls 1%
TOKYO: Japan's all-industries index fell 0.1 percent in June
from a month earlier due to weak domestic demand and stuttering
corporate investment, data showed Wednesday.
The index, which monitors industries including construction,
agriculture and fisheries, had risen 1.0 percent in May, the
Ministry of Economy, Trade and Industry said.
Slower activity among service industries coupled with sluggish
industrial production weighed on the index in June, said Mamoru
Yamazaki, chief economist at Barclays Capital.
Japan's June tertiary activity index, which covers services
such as retailers, restaurants and utilities, fell 0.3 percent
from the previous month when it rose a revised 0.9 percent.
"The June monthly index fell as sectors such as leasing of
industrial equipment and information services dropped," said a
ministry official.
"The slow activity in the leasing sector, for example,
reflected sluggish or even felling capital spending," he said.
A 1.7 percent slump in the wholesale and retail sector also
contributed to the weak June figure, the government said. -- AFP
;Agencies;
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MoneyMatter-KL-firms
KL palm firms to set up database
JP/16/Money
KL palm firms to set up database
KUALA LUMPUR: Malaysia's palm oil industry plans to set up a
database in a move to reduce market dependence on foreign
intelligence and to boost competitiveness, a report said
Wednesday.
The intelligence unit, with an annual allocation of five
million ringgit (US$1.32 million), will give market players a
steady stream of reports on crop production and price, said Abdul
Khalid Ibrahim, chairman of the Malaysian Palm Oil Association.
"With strong market intelligence, companies will be better at
anticipating demand and supply and adjusting operations
accordingly to compete against the world's 15 other edible oils,"
he told the New Straits Times daily.
The facility, enabling traders to monitor analyses and updates
on supply and demand, would reduce the market's dependence on
foreign sources such as the Chicago Board of Trade commodity
market.
"The sector has been relying too much on information from
abroad ... as a leading producer, we should have greater
influence on the market," said Abdul Khalid, adding foreign
sources could sometimes be misleading. -- AFP
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MoneyMatter-Taiwan-privatisation
Taiwan to accelerate privatisation
JP/16/Money
Taiwan to accelerate privatisation
TAIPEI: Taiwan plans to speed up the privatisation of a number
of state-own enterprises to beef up competitiveness, economic
officials said Wednesday.
The affected firms included Taiwan Power Co. (Taipower),
Chinese Petroleum Corp. (CPC), Taiwan Tobacco and Liquor Corp.
(TTLC) and Tang Eng Iron Works Corp., officials from the Council
for Economic Planning and Development (CEPD) said.
According to the new timetable, CPC would be privatised one
year earlier at the end of 2003, followed by Taipower by the end
of 2005, two years ahead of an earlier schedule, they said.
The privatisation of TTLC was rescheduled one year ahead to
July 2004, they said, while Chunghwa Telecom would be privatised
by the end of 2003 as originally planned.
The CEPD also wants to privatise Bank of Taiwan, Land Bank of
Taiwan, Central Trust of China, Taiwan Cooperative Bank and
Taiwan Sugar Corp., it said, adding a timetable would be
introduced by the end of the year.
The government hopes to raise NT$617.2 billion (US$18.2
billion) through the privatisation of 18 state enterprises in the
next five years, the officials said.