InfoAnda - WRAPUP 1-S.Korean officials play down rate hike in near term

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Miley Cyrus voted worst celebrity influence of 2009 | Entertainment | | 29 October 2009
British PM visits UK troops near Afghan front line | 13 December 2008
Western movie character actor Harry Carey Jr. dies at 91 | | 29 December 2012

Myanmar's Suu Kyi in party ban appeal | 14 January 2011

">Forum Views () ">Forum Replies ()

Read more with google mobile : WRAPUP 1-S.Korean officials play down rate hike in near term

Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: WRAPUP 1-S.Korean officials play down rate hike in near term Reuters - Friday, June 19 * No interest rate hike in near-term: vice finance minister ADVERTISEMENT * Finance ministry officials vow to keep stimulative policy * Bank of Korea absorbs more liquidity in market operation * Financial watchdog head says liquidity not excessive By Cheon Jong-woo and Seo Eun-kyung SEOUL, June 18 - Top South Korean government officials on Thursday downplayed market expectations that there could be an imminent interest rate rise, saying a sudden policy shift could shock the sputtering economy. The comments came as the central bank drained more cash from the system for the first time since March in its money market operations, highlighting expectations that it will gradually tighten its policy stance to stamp out any inflationary pressures before turning to rate hikes. "It seems they are gearing for action to absorb liquidity before tightening the base rates," said Kong Dong-rak, a fixed-income analyst at Taurus Investment & Securities. South Korean government bonds rallied on the market-soothing remarks from officials, with the 1-year treasury bond yield <KR1YT=KSDA> falling 3 basis points to 3.17 percent. ID:nSEO687010] Investors began bracing for a rate increase last week after central bank Governor Lee Seong-tae unexpectedly said that the economic slide was over and pointed to rising oil prices as a fresh inflation threat to Asia's fourth-largest economy. [ID:nSEO257805] However, Vice Finance Minister Hur Kyung-wook told reporters on Thursday it was too early to raise rates as the economy was still fragile. "We have the same view . It is not time to raise interest rates or worry about inflation." [ID:nSEO27191] Hur said the economy was expected to expand faster than a government forecast of 0.7 percent growth in the second quarter from the first, thanks to unprecedented pump-priming by authorities. But he warned the recovery pace could slow down in the second half. Like many other export-reliant Asian economies, South Korea needs a clear rebound in consumer demand in recession-hit Western markets to fuel a sustainable economic recovery. After the official's comments, September treasury bond futures <KTBc1> rose as much as 38 ticks but gave up some of the gains to end up 27 ticks at 109.22 as some traders scaled back their expectations for a rate increase late this year. Finance Minister Yoon Jeung-hyun told reporters after meeting with top economists that he was agonising over whether and when to reverse the counter-crisis measures. "I cannot tell when the right timing is for an exit," Yoon said. The Bank of Korea as the sole custodian of stable prices needs to take timely and pre-emptive action against inflation, whereas the finance ministry wants more stimulus to guarantee economic recovery, he said. "What's apparent now is there will be no more sweets ," said Kong of Taurus Investment. "Instead, we will see more talk of rate hikes in the coming months. But the central bank will likely wait as long as possible and then rush for sharp hikes early next year to increase their policy impact," Kong said. After Lee's remarks last week, bond investors scrambled to price in a possible rate hike as early as late this year, with the yield curve flattening sharply. The 1-year treasury bond yield rose to a 5-month closing high of 3.2 percent on Monday, reducing its gap with the 10-year treasury yield to a near 2-month low. For a Q+A on whether the South Korean economy is ready for higher rates, see [ID:nSEO4678]. LIQUIDITY CONTROL The Bank of Korea drained 13 trillion won from the market on Thursday via 7-day repurchase agreement deals, more than the 11.5 trillion won due to mature during the day. It was the first time the central bank had drained net cash from the financial system via its weekly auction -- absorbing more than the maturing amount -- since March 19. "We drained much more than the maturing amount as reserve currency surged due to the government's aggressive spending," said a central bank official. "We're taking fine-tuning actions to control the level of liquidity," he said. Tenders received for the repurchase amounted to 62.08 trillion won, indicating the local financial system had abundant cash liquidity. Financial Supervisory Service chairman Kim Jong-chang told reporters he did not see the current level of liquidity as excessive, with slow money flows due to the economic slump offsetting a sharp increase in money supply. [ID:SEO65302] (Additional reporting by Kim Yeon-hee; Editing by Jonathan Hopfner & Kim Coghill) Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: Business Feds: Exec's divorce a ploy to dodge $3.2B payoutAP - Friday, June 19 Sallie Mae shares soar on government contractAP - Friday, June 19 J.M. Smucker 4Q profit soars, tops viewAP - Friday, June 19 Oil rises above $71 amid falling inventoriesAP - Friday, June 19 La. Senate panel kills Internet charge billAP - Friday, June 19 Most Popular – Business Viewed Clones of 9/11 hero dog unveiled in Los Angeles Men's 'stiff upper lip' may explain cancer death rate Obama signs note for girl who played hooky to see him Climate change is happening 'here, now': US report Airbus a big winner at Paris Air Show View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

Other News on Thursday, 18 June 2009
Arabs largely silent on Iran unrest
Internet most popular information source: poll
Belfast racists force Romanians to hide in church
Iran accuses US of meddling after disputed vote
First-ever link between missing DNA and cancer: study
Google bows to pressure for German Street View
U.S., Israel seek clarity on settlement freeze | International |
Asia-US cable gateway ready by August: Philippine firm
Iran opposition presses protests despite crackdown
Time for 'new world order': Brazilian President
Jerusalem childrens' peace banner aiming for space
US cybersecurity chief warns of 'market' in malware
Tame US consumer prices dampen inflation concerns
Romanians flee Belfast homes after racist attacks | International |
Microsoft search still growing with Bing: comScore
More than 100,000 German students protest | International |
Iraq: suspect arrested in Sunni lawmaker's death
Energy bill advances in Senate
iPhone, iPod security flaws get 45 patches | Technology |
Sirius XM slated to launch iPhone app | Technology |
Internet most popular information source: poll | Technology |
NJ casino fined in brew-haha over mislabeled beer
4 charged in fatal NJ block party shooting
EPA Declares Public Health Emergency At Libby, MT Asbestos Site
Lee says North Korea must give up nukes
Obama Proposes Sweeping Regulatory Oversight Changes For Banks
Evacuations ordered in Texas train spill
Diplomats: Myanmar ready to host visit by UN chief
Four U.S. Banks Payback TARP, More To Follow
Shuttle launch delayed to July by hydrogen leak
Karzai defends VP pick criticized by rights groups
Medical Device Maker Synthes Indicted For Unapproved Trials Of Bone Cement
India says its ready to talk peace with Pakistan
Bid idled to draft Gov. Jindal for White House run
Missing PA Woman Found Unharmed In Trunk Of Her Car
Prison chief: Pol Pot ordered 4 Westerners killed
AP Sources: Better training urged in Afghan probe
Obama To Push Regulatory Reform; Sotomayor Meets With Senators
Taiwan's Ma denies China reunification drift
Judge Allows Republicans To Control New York Senate
AP Newsbreak: Mich. man says he may be missing boy
House Passes $106 Billion War Funding Bill
China, Russia say ties must flourish in economic crisis
NASA aims for unmanned moon rocket launch Thursday
North Korea Threatens "Merciless Military Strike" Against U.S.
Indonesia mine blast toll rises to 31: officials
Tame US consumer prices dampen inflation concerns
Obama To Provide Federal Benefits To Gay Couples
9/11 search dog cloned for former Canadian cop
Athletes come first for us, says Tokyo Olympic bid chairman
Tribesmen kill 28 Taliban militants in NW Pakistan
KFC plans China expansion as US sales fall
China's Wen says recovery at 'critical' stage: report
Japan economy has hit bottom: minister
Pakistani 6-mth T-bill cut-off yield at 12.4385 pct
Black Eyed Peas dominate U.S. charts | Entertainment |
Japan ups economic assessment
US-ENTERTAINMENT Summary
Happy Together, again: rocker relives glory daze | Entertainment |
Happy Together, again: rocker relives glory daze
Chace Crawford is People's `hottest bachelor'
Sirius XM slated to launch iPhone app | Entertainment |
`Daily Show' correspondent Jones reports from Iran
Death toll from mine blast in Indonesia reaches 31
Judge halts Catcher in the Rye spin-off for now | Entertainment |
Recession turning Germans to sweets and snacks
Forty feared dead in Indonesia coal mine blast
South Africa tightens security around Confed stadiums
Sean Penn drops out of 'Cartel,' 'Three Stooges'
Unclear if Pakistan offensive serves US interests
Czech president wants vote on Ireland treaty guarantees
Iran set for day of mourning after protest deaths | International |
Toshiba to speed up system chip shrinkage
Rights groups: reformists seized in Iran crackdown
Clones of 9/11 hero dog unveiled in Los Angeles
EU ministers warn crisis-hit Ukraine
North Korea chemical weapons threaten region: report | International |
Cyber-sympathizers aid Iran protestors online
Summit set to back Barroso's bid for second term at EU helm
Iran set for day of mourning
Flyswatter-in-chief flexes his muscles in White House
U.S., Israel seek clarity on settlement freeze | International |
Microsoft downplays expectations for Bing
Schwarzenegger vows to veto California tax boost
Brazil, France deny rift over jet disaster probe
U.S. wireless providers debate about competition
Intel to rebrand some chips, phase out "Centrino"
Obama unveils key regulatory overhaul
Killing of US soldier casts light on Mosul police
Microsoft makes gains with Bing
Cuba is rolling museum of vintage U.S. cars | International |
Funding threatens US return to moon by 2020
AT&T lets more iPhone users upgrade for lower price
Myanmar rebels to abandon base, vow to fight on | International |
Big banks repay US for capital
Zimbabwe seeks tourism bonanza from World Cup | International |
Iraq makes arrests after Sunni leader's murder
World media turn to Twitter, email to defy Iran reporting ban
Ford is in 'really good shape': CEO
Key players in Iran's disputed election
Microsoft makes gains with Bing | Technology |
North Korea chemical weapons threaten region -report
Asia tennis stars strike blow for ages
AT&T lets more iPhone users upgrade for lower price | Technology |
Australian taser death sparks outcry
Obama: More benefits for gay workers only one step
Intel to rebrand some chips, phase out Centrino | Technology |
US seeks 'dramatic expansion' of India ties
U.S. wireless providers debate about competition | Technology |
Hillary Clinton fractures elbow in fall
Toshiba to speed up system chip shrinkage | Technology |
Mekong river dolphin near extinct: WWF
New financial rules: Major changes for big, small
Iranian athletes wear green in apparent protest
SKorea leader says won't accept nuclear North
7th victim of Mexico day care fire arrives in US
NYC man accused of threatening to kill prosecutor
Israel's Lieberman rejects settlement freeze
IAEA slams NKorean nuclear test
Ill. AG Madigan met with Obama, mulling Senate run
China Eastern Air to buy 20 Airbus A320 jets
Asia seen ready to take stronger leadership role
Pakistani c.bank buys 81.5 bln rupees of T-bills
NZ housing affordability improves in May-report
Billy Joel separates from third wife Katie Lee | Entertainment |
World Bank ups China 2009 growth forecast
Fallen Seinfeld star Richards a new man | Entertainment |
Pakistan's Karachi hit by power black-out
Reese Witherspoon proves a Pharm Girl' at heart | Entertainment |
Korea Hot Stocks
Walt Disney museum to focus on man behind brand | Entertainment |
Taiwan dollar slips in thin trade, eye on NDFs
S.Korea monitoring increase in household lending
Cannes-winning Philippine director shuns mainstream
Tom Cruise eyes new Mission: Impossible | Entertainment |
S.Korea government bonds gain on weak shares
Celebrity birthdays for the week of June 21-27
Andy Murray aims to follow in Perry's footsteps
The machines rise again in tedious Fallen | Entertainment |
Emmy Awards move over for MTV Video Music Awards
Kelis lays out support needs from Nas
Jane Fonda undergoes surgery to replace left knee
Baron Cohen's Bruno has military flair at premiere
Jimmy Choo designs collection for high-street's H&M
US publication of book delayed in Salinger dispute
Billy Joel separates from third wife Katie Lee
Ireland 'to get guarantees' at EU summit
T-Mobile USA to launch Dash smartphone in July
ElBaradei and Israel clash over Syria probe "bias"
Climate catastrophe getting closer, warn scientists
U.S. drones kill 9 in Waziristan: Pakistan officials | International |
Iran takes center stage at Twitter conference
Somali minister 'killed in suicide bombing'
Video clip raises Christian-Druze tension in Israel
Suicide bomber kills Somali security minister | International |
Pirates were democrats, says scholar
Another minister quits as British MPs' expenses published
Video views of democracy lauded online
Air France crash sparks black box debate | International |
Jerusalem launches debate on sharing holiest site | International |
Iraq forms committee after prisoner abuse reports | International |
ElBaradei, Israel clash over Syria probe bias | International |
Insurgent ambush kills 24 Algerian police: report | International |
Climate catastrophe getting closer, warn scientists
Activists defy Israel, to send Gaza cement | International |
Fla. city to workers: Wear underwear, deodorant
Former Vt. Gov. Dean backs public health choice
Malaysia's Anwar seeks to block sodomy charge
LG to produce monitor with virtualization technology | Technology |
Arms talks ahead of Obama visit "constructive"
Doh! Wrong turn? Homer gives driving directions | Technology |
Officials: Tajik ex-interior minister takes life
Tennis ace Sharapova unveils blinking phone dress | Technology |
China attacks Google over pornographic links | Technology |
Study: Pollution killing rare Irrawaddy dolphins
The Nation's Weather
T-Mobile USA to launch Dash smartphone in July | Technology |
Taiwan opposition to control members' China visits
Animal kills by federal agency more than double
White US Rep. in black Tenn. district faces fight
Mongolian president elect sworn in
Japan votes to lift ban on child organ transplants
Animal activists decry expanded elephant displays
Suspected US missile strikes in Pakistan kill 8
Suspected US missile strikes in Pakistan kill 5
Administration, lawmaker collide on highway bill
India state begins to reclaim "liberated" Maoist zone
AP NewsAlert
India's TCS opens new outsourcing center in Mexico
Paris Hilton brings her reality show to Dubai
WRAPUP 1-S.Korean officials play down rate hike in near term
World Bank raises China 2009 growth forecast
Taiwan port, shipping officials indicted for fraud
India enters deflation as economy slows
Asia seen ready to take stronger leadership role
Fallen Seinfeld star Richards a new man | Entertainment |
Malaysian manufacturing plunges 26.2 pct in April
Federal gay marriage challenge is a Hollywood tale | Entertainment |
Paris Hilton brings her reality show to Dubai
Scottish legends Proclaim political credentials
Woody Allen eyes Carla Bruni for film role | Entertainment |
Japan stocks fall on strong yen, economic worries
Bruno v Borat: Satirist pokes fun at former guise
En garde! Rival houses offer Picasso musketeers | Entertainment |
Heath Ledger's uncle to defend stealing charges
Billy Joel separates from third wife Katie Lee | Entertainment |
Boyle gently chides China for movie restrictions
Obama extends partial gay benefits
Electro generation grows up, takes kids raving
Boyle gently chides China for movie restrirctions
Fly: new album from a wholly trinity of jazz
Struggle for gay rights hits football in Turkey
Former St. Lucia Governor: Amy Winehouse Is A "Tattooed Reptile"
TV Bosses Approach Prine Harry's New Love Interest About Fighting His Ex On-Air
Queen Elizabeth's Gamekeeper Fined Over a Dead Badger
Sacha Baron Cohen: Britain's Prince Harry "A Total Slut"
Frozen Sharks Yield Ton Of Cocaine
Five Clones Of 9/11 K-9 Presented To Dog Handler
Arizona Town Settles Tied Election With High-Card Draw
5th Graders Create "Obaminoes" Mural To Celebrate History Making President
Missing PA Woman Found Unharmed In Trunk Of Her Car
Jada Pinkett Smith: Having Sex At A Friend's House Can Keep Relationships Alive
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01