SBI rate down to 12.84%

SBI rate down to 12.84%

JAKARTA: The central bank said Wednesday that its one-month Bank Indonesia SBI promissory notes yielded 12.84 percent at its weekly auction, slightly down from 12.89 percent last week.

The central bank said it accepted Rp 22 trillion in bids for the one-month SBI notes, or 67 percent of the total bids received.

The size of the rate fall was slightly more than the market had expected. Market participants were expecting the rate to fall to just 12.87 percent on concerns over rising inflationary pressures following the recent hikes in fuel prices and utility costs.

Indonesia's average annual inflation stood above 11 percent last year, above the government's target of slightly below 10 percent.

The rate fall showed the central bank isn't overly concerned with the impact of the recent price hikes on inflation for the whole year. Bank Indonesia instead still wants to guide rates lower to help spur economic growth and reduce the weighty costs of the bailout program for the financial sector. -- Dow Jones

China's industrial output up 12.6%

SHANGHAI: China's fast growing economy saw its industrial output in 2002 shoot up 12.6 percent on robust production of consumer goods and autos, as well as rapidly rising exports, official figures said Wednesday.

Industrial output growth totaled 3.5 trillion yuan (US$422 billion) compared with growth of 9.9 percent last year, the State Economic and Trade Commission reported.

For the month of December industrial output grew at its fastest pace in 2002, up 14.9 percent annually to 321.6 billion yuan.

The commission said it was expecting industrial output in January to nearly match last month's growth figure, up 14.5 percent to 266.7 billion yuan.

According to previous state media reports, China's economy is set to grow by between 7.6 and 7.8 percent next year, down from the 7.9 percent figure in 2002 that is still awaiting official tabulation.

Rising exports are one reason Chinese officials are bullish that Asia's second largest economy will continue its brisk growth. -- AFP

TSE, Shenzhen bourses to cooperate

TOKYO: The Tokyo Stock Exchange (TSE) said Wednesday it has agreed with China's Shenzhen bourse to promote cooperation for the development of Asian securities markets.

The TSE said it signed a memorandum of understanding with the Shenzhen Stock Exchange, which will provide "a mechanism of long- term cooperation to facilitate the development of channels of communication."

They would exchange visits by senior management and provide information upon request to each other, the TSE said in a statement. -- AFP

S. Korea's 2002 GDP up 6.2%

SEOUL: South Korea's economy is estimated to have grown 6.2 percent last year, Finance and Economy Minister Jeon Yun-Churl said Wednesday.

The economy is forecast to grow about five percent this year, he said.

"Last year, (GDP) growth is estimated at 6.2 percent," Jeon told a seminar, adding that growth was driven by domestic demand during the first half, and underpinned by exports from the third quarter.

Jeon said the incoming government of president-elect Roh Moo- Hyun shared the views of the current government on macro-economic policies.

"Even under the new government, the framework for macro- economic policies is expected to be maintained. Growth will be about five percent this year," Jeon said.

In regard to recently escalating concerns about the possibly negative impact of North Korea's nuclear problems on the overall economy, Jeon said Kim Dae-Jung government's "sunshine policy" of engagement with the North should be maintained despite criticism. -- AFP

British jobless falls to 27-year low

LONDON: British unemployment fell to 928,300 in December when 5,800 people signed off the benefits register, leaving the jobless rate steady at 3.1 percent, official figures showed Wednesday.

The latest decline left the jobless total at its lowest level since September 1975, the National Statistics office said.

The International Labor Organization's measure of unemployment fell by 5,000 in the three months to November from the previous quarter to 1.52 million.

The ILO unemployment rate was unchanged on the quarter at 5.2 percent.

The annual growth rate of headline average earnings rose 0.1 percentage points to 3.8 percent in the November quarter.

Analysts had expected a fall of 2,000 in the December jobless total. -- AFP