Page 6 - Global Economy

Rate cut bets not unreasonable but economy is picking up: BoE's Bailey

"The market is essentially embodying in the curve that we will reduce interest rates during the course of this year," Bailey told lawmakers on the Treasury Select Committee

Goldman Sachs pushes BoE interest rate-cut forecast to June from May

Despite data showing signs of cooling in inflation, the central bank remains cautious in its approach due to persistent wage increases and a tight labor market

China's Premier Li Qiang urges 'forceful' action to boost confidence

Chinese leaders are hunting for ways to jump-start the economy, which faces headwinds from a property slump, weak business confidence and persistent deflationary pressures

8 sub-committees reviewing free trade agreement between India, Asean

Eight sub-committees have been constituted under the India-Asean free trade agreement joint committee for undertaking negotiations on different areas related to the review of the pact, an official statement said on Monday. India hosted the third meeting of the committee for undertaking the review here from February 16-19. The AITIGA (Asean-India trade in goods agreement) was signed in 2009. In September 2022, both sides tasked the AITIGA Joint Committee to undertake the review to make the agreement more trade facilitative and mutually beneficial. "A total of eight sub-committees have been constituted under the AITIGA Joint Committee for undertaking negotiations on different policy areas related to the agreement," the commerce ministry said. The first two meetings of the joint committee were held in May and August last year. In the meeting, the ministry said, the sub-committees reported the progress and outcome of their discussions related to market access, rules of origin and ...

Ship attacked in Gulf of Aden at risk of sinking, say Yemen's Houthis

The Iran-aligned Houthis have made repeated drone and missile strikes since November in the Red Sea and Bab al-Mandab Strait, drawing US and British bombing against them

China asks Pakistan's political parties to work together to form govt

Beijing is also bankrolling Pakistan, which is in the throes of an economic crisis, to maintain the balance of payments with periodic loans to maintain the requisite forex reserves

Goldman raises global equities to 'overweight' on economic growth prospects

"We expect growth to become a more important driver of risk appetite and equity/bond correlations should be more negative this year," Goldman said in a note dated Feb 16

TN fiscal deficit at 3.44% in FY25, growth anticipated: State finance secy

Tamil Nadu's fiscal deficit in the Budget Estimates for 2024-25 stood at 3.44 per cent of the GSDP despite a decline in the State's Own Tax Revenue (SOTR) due to two successive natural calamities in December 2023 resulting in additional expenditure, State Principal Secretary-Finance T Udhayachandran said on Monday. The SOTR suffered a revenue loss due to cyclone Michaung and unprecedented rains in the southern districts. The state government had to spend more on flood relief, provide immediate relief measures besides initiate long-term relief measures, he said. "This budget has been prepared under this financial stress...Nevertheless, Tamil Nadu's economy is robust. We expect a 15 per cent growth in our SOTR through the Commercial Taxes Department," Udhayachandran told reporters here. The Registration department did not see the expected growth last year but next year the government hoped that it would fetch more revenue to the state, he added. Briefing the media on the Budget ...

'Thai economy shrinks, adds to rate cut case amid central bank, PM feud'

From a year earlier, GDP grew 1.7%, faster than revised 1.4% growth in the third quarter but slower than a forecast 2.5% expansion

Chinese minister says trying to cut country out of trade would be mistake

China's foreign minister told a gathering of international security policy officials Saturday that trying to shut China out of trade in the name of avoiding dependency would be a historic mistake. Wang Yi spoke at the Munich Security Conference. Host Germany wants to avoid over-reliance on trade with an increasingly assertive China and diversify its supply of key goods in an approach it calls de-risking. That's in line with the approach of other industrial powers in the Group of Seven, which has stressed that it doesn't seek to harm China or thwart its development. Beijing has criticized the strategy. Today ... more people have come to realize that the absence of cooperation is the biggest risk, Wang said through an interpreter. Those who attempt to shut China out in the name of de-risking will make a historical mistake. The world economy is like a big ocean that cannot be cut into isolated lakes, he added. The trend toward economic globalisation cannot be reversed. We need to wor

Russian central bank holds interest rate at 16% after months of tightening

Russia's domestic demand was still outstripping production capacity, the bank said, with labour shortages still the key constraint on expanding the output of goods and services

German economy to shrink by 0.5% in 2024 on weak domestic demand: Report

A DIHK poll of more than 27,000 companies showed that of those surveyed, 35% expect business to deteriorate in the next 12 months with only 14% expecting an improvement

India set to boost its economic, geopolitical role: Nobel Laureate Spence

India is poised to boost its economic and geopolitical role in the coming decades, helped by an evolving demographic dividend, rapidly expanding digital economy and GDP growth rates that top the world's major economies, Nobel Laureate Michael Spence has said. Spence further said India's leap on the technology front will be a key catalyst for the economic expansion of the nation, currently the world's fifth biggest economy and its pivotal position in international affairs. "As somebody who has spent the last 25 years thinking about growth in one form or another in virtually every corner of the world, let me just say that the major economy with the highest potential growth rate is India," he told ET NOW. The eminent economist noted that India has successfully developed, by far, the best digital economy and financial architecture in the world. "It is a transformational architecture," he said. Spence said the relatively open global economic system that has been in place for over 70 ye

Falling US Fed rate cut bets keep gold below $2,000 level, palladium up 7%

Spot gold was down 0.2% to $1,988.08 per ounce as of 9:53 a.m. EST (1453 GMT) - its lowest price since Dec. 13. Bullion fell about 1.4% on Tuesday

Japan growth data set to confirm its slip to 4th-largest economy last year

While the economy is seen returning to annualized growth of 1.2% in the fourth quarter after a bruising contraction in the summer

Need to grow at 7-8% to become developed nation by 2047: Ex-RBI Guv

India needs to grow at seven to eight per cent annually in order to become a developed nation with USD 13000 per capita income by 2047, former Reserve Bank Governor C Rangarajan said on Tuesday. Asserting that innovation cannot be a single solution to reduce inequalities or poverty, the former Chairman of the Prime Minister's Economic Advisory Council said besides faster growth rate, the country may need social safety nets such as subsidies in kind of cash and basic income. I would say that the real growth between 7 per cent and 8 per cent will take it closer to the developed economy, because the developed economy by definition shows per capita income of USD 13,000 or more. India's per capita income is now at USD 2700. That means per capita income will have to increase by five times, he told PTI. According to him, if the exchange rate is kept at a lower level or if the prices go up then nominal income will increase, then India can become a developed nation. Therefore, I am saying t

Global economy to see soft landing, rate cuts coming, says IMF's Georgieva

She cautioned to expect the unexpected in the wake of the COVID-19 pandemic and said a prolonged war between Israel and Hamas would impact global economies

In an election year, markets typically flourish, says Arbind Maheswari

Historically, the markets tend to perform well during election years as governments aim to increase spending and call attention to growth, he said

ECB needs to start cutting interest rates soon, says Fabio Panetta

"Macroeconomic conditions suggest that disinflation is at an advanced stage, and progress toward the 2% target continues to be rapid," he said on Saturday at the annual Assiom Forex event in Genoa

China's consumer prices suffer steepest fall in more than 14 years

Citigroup economists said in a research note last week that they expect mild reflation in 2024, and forecast annual CPI inflation at 1.2 per cent year-on-year