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