2024-11-07 10:52

Norges Bank keeps policy rate at 4.50% Rate remains at highest level since 2008 Policy on hold until year-end New rate projections due in December Inflation remains above target OSLO, Nov 7 (Reuters) - Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as unanimously expected by analysts in a Reuters poll and reiterated that it will stay on hold until the end of the year. "The committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon," the central bank said in a statement. The Norwegian monetary policy contrasts with that of other Western central banks, most of which have begun cutting rates this year. The Swedish central bank earlier on Thursday cut rates by 50 basis points, as expected, and said that, if the economic and inflation outlooks remain the same, it may also cut the rate in December and in the first half of 2025. The Federal Reserve, the Bank of England and the Czech National Bank are also expected to announce rate cuts later on Thursday. Norges Bank, meanwhile, said the outlook for the Norwegian economy did not appear to have changed materially since September, when it forecast that rates would start to decline in the first quarter of 2025. "If the economy evolves as currently envisaged, the policy rate will be held at today's level to the end of the year," Norges Bank Governor Ida Wolden Bache told a press conference. "The committee will have received more information about developments ahead of its next monetary policy meeting in December, when new forecasts will be presented," Norges Bank said in a statement. The Norwegian crown strengthened to 11.79 against the euro at 1040 GMT, from 11.81 just before the announcement. While Norges Bank remains likely to cut rates in March of 2025, this is by no means a certainty, Handelsbanken Markets said. "Recent market developments suggest there is a risk that even March could be too early," the brokerage said in a note to clients. Inflation has been slightly lower than expected since September but the Norwegian currency has also been weaker, causing potential upward pressure on consumer prices while market interest rates have risen, economists have said. A weaker crown currency makes imports more expensive while a stronger one can help dampen inflation. The Nordic country's core inflation eased in September to 3.1% year-on-year, continuing a decline from a peak of 7.0% in June 2023 but still above the central bank's official 2.0% target. Sign up here. https://www.reuters.com/markets/rates-bonds/norway-central-bank-keeps-rate-hold-2024-11-07/

2024-11-07 09:15

KUALA LUMPUR, Nov 7 (Reuters) - Narrowing interest rate differentials between Malaysia and major economies is good for Malaysia's ringgit , despite greater volatility in global markets following the U.S. election, Malaysia's central bank chief said on Thursday. Abdul Rasheed Ghaffour said Bank Negara Malaysia would do what was required to maintain a financial market environment conducive for investment and economic activity. "The central bank will play its part and do what is needed to ensure both monetary and financial stability," Abdul Rasheed said at an event to launch a new investment portal for Malaysia. "We are closely monitoring global developments and stand ready to manage any spillover to domestic markets, including by ensuring sufficient liquidity in the domestic foreign exchange market." Malaysia's central bank kept its key policy rate (MYINTR=ECI) , opens new tab unchanged at 3.00% on Wednesday in its final meeting of the year, as widely expected, reflecting a positive economic outlook and steady inflation, while warning of potential currency volatility. Abdul Rasheed said the domestic landscape remained on a firm footing, owing to Malaysia's solid economic prospects and fundamentals, which gave him confidence on the investment front. Malaysia has received a slew of digital investments from major tech firms this past year, including Alphabet's (GOOGL.O) , opens new tab Google, helping to propel its economy with growth beating market expectations in the last two quarters and the ringgit becoming one of Asia's top performers. At the same event on Thursday, Second Finance Minister Amir Hamzah Azizan said Malaysia would in the first quarter of 2025 announce a new investment incentives framework, which would also include new strategic investment funds. Sign up here. https://www.reuters.com/markets/asia/malaysia-central-bank-ensure-stability-amid-global-volatility-governor-says-2024-11-07/

2024-11-07 08:31

JOHANNESBURG, Nov 27 (Reuters) - South Africa's rand recouped some losses on Wednesday, as the dollar eased slightly ahead of a U.S. inflation report later in the day. At 0851 GMT, the rand traded at 18.105 against the dollar , 0.45% stronger than its previous close. The dollar index was last down 0.24% against a basket of currencies ahead of October's U.S. Personal Consumption Expenditures price index due later on Wednesday. South African domestic investor focus will be on monthly producer inflation data on Thursday followed by money supply, trade and budget balance on Friday. Trade in the rand has been volatile this week amid market jitters about the imposition of trade tariffs by U.S. President-elect Donald Trump. On the stock market, the Top-40 (.JTOPI) , opens new tab index was little changed. South Africa's benchmark 2030 government bond was stronger, with the yield down 3.5 basis points at 9.02%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-recoups-some-losses-against-dollar-2024-11-27/

2024-11-07 08:26

MUMBAI, Nov 7 (Reuters) - The period of low volatility that the Indian rupee has enjoyed may not last now that Donald Trump is poised to become U.S. president once again, bankers and advisors cautioned, urging companies to manage their forex risks more prudently and proactively. The rupee dropped to an all-time low of 84.3625 to the U.S. dollar on Thursday, adding to the previous day's losses when the election outcome prompted Asian currencies to plunge. Investors are dumping Asian currencies, and the dollar is rallying against its major peers on bets that Trump's expected policies of lower corporate tax and deregulation would boost U.S. growth. In addition, Asian currencies are having to contend with the possibility of Trump raising tariffs, especially on China. All of this is likely to mean a period of higher uncertainty and volatility for Asian currencies, said bankers, adding that the usually muted Indian rupee will not be immune to the disruptions that Trump's policies are likely to lead to. The rupee is "likely to enter a period of somewhat increased volatility with the risk of larger moves over the coming months," Abheek Barua, chief economist at HDFC Bank said in a note. For Indian companies, used to the rupee in a narrow range for extended periods, this will mean an adjustment to the way they manage their foreign exchange risks. The rupee's 3-month daily realized volatility this year has been in a 1%-2.5% range, way below the 10-year annual average of 5%. Due to rupee's low volatility, Indian importers have been keeping a relatively low hedge ratio and "were more inclined to wait" till near to the date of payment, a forex salesperson at a mid-sized bank said. "That may no more be feasible now that the perceived risk has moved," he said. Companies should be prudent and hedge their near-term risks (for the next 3-6 months), HDFC Bank recommended. Abhishek Goenka, founder and CEO of forex advisory firm IFA Global, said importers can opt for option hedges vis-à-vis forward hedges, depending on their risk profile. "For the extremely conservative ones, we are suggesting that if you have confirmed payments to be made, then can consider a combination of options and forwards." Sign up here. https://www.reuters.com/markets/currencies/trumps-us-election-win-prompts-calls-indian-firms-be-cautious-forex-risks-2024-11-07/

2024-11-07 07:56

Nov 7 (Reuters) - Britain's Harbour Energy (HBR.L) , opens new tab on Thursday raised its 2024 production forecast by 1% at midpoint to reflect the contribution from its purchase of oil and gas firm Wintershall Dea's assets. The largest British North Sea oil and gas producer now expects , opens new tab annual production of 255-265 thousand barrels of oil equivalent per day (kboepd), including about four months worth of production from Wintershall Dea's upstream assets. Harbour agreed to acquire the German company's non-Russian oil and gas assets in an $11.2-billion deal last year with co-owners BASF (BASFn.DE) , opens new tab and LetterOne, aiming to create one of the world's biggest independent producers. Post the deal, completed in September, Harbour Energy had raised its forecast to 250-265 kboepd from the prior forecast of 155-165 kboepd. Sign up here. https://www.reuters.com/business/energy/uks-harbour-energy-marginally-raises-2024-production-forecast-2024-11-07/

2024-11-07 07:48

Typhoons, El Nino tame agriculture and public spending Full-year GDP growth target still attainable -minister Philippine stocks slump, peso weakens MANILA, Nov 7 (Reuters) - The Philippine economy (PHGDP=ECI) , opens new tab grew in the third quarter at its slowest annual pace in more than a year as severe weather disrupted government spending and dampened farm output, to strengthen the case for further policy easing. Gross Domestic Product (GDP) (PHGDPQ=ECI) , opens new tab grew 5.2% in the July-September on the year, government data showed on Thursday, below a Reuters poll forecast of 5.7%, for the most tepid rise since expansion of 4.3% in the second quarter of 2023. The third quarter performance takes year-to-date growth to 5.8%, below the government's full-year target of 6.0% to 7.0%, but officials expect growth to regain momentum in the last quarter on easing inflation and looser monetary policy. "We expect these interventions to spur growth in private spending, particularly on big-ticket consumer items and investments in capital-intensive infrastructure," Economic Planning Secretary Arsenio Balisacan told a press conference. The benchmark stock index (.PSI) , opens new tab closed down 2.11% at an eight-week low. The peso currency weakened as much as 0.25% intraday to 58.805 per dollar. Six storms in the third quarter delayed government projects, and ravaged crops that caused farm output to decline by the most in nearly four years to 3.7%, versus a slump of 3.2% in the previous three months. Government spending slowed sharply in the third quarter, growing by 5% compared with 11.9% in the prior three months, while domestic consumption climbed slightly faster to 5.1% from 4.7% in the June quarter. The slight improvement in consumer spending supported growth on a quarter-on-quarter basis (PHGDPQ=ECI) , opens new tab, which accelerated to 1.7%, better than economists' expectations for a 1.5% rise and the prior quarter's 0.7% increase. Despite the slight uptick in October, inflation has so far stayed within the central bank's target of 2.0% to 4.0% for the year, giving it room to further cut interest rates after a reduction of 50 basis points in total at its last two meetings. "The BSP may continue to cut interest rates in coming months, although aggressive rate cuts are unlikely due to domestic and external considerations," Emilio Neri, lead economist at Bank of the Philippine Islands in Manila, said in a statement. The central bank will meet on Dec. 19 to review policy. "We expect the BSP to continue easing the policy rates, so that will add positive pressure on investments, particularly private construction," Balisacan added. ($1=58.74 Philippine pesos) Sign up here. https://www.reuters.com/markets/asia/philippines-gdp-yryr-growth-slows-52-q3-2024-11-07/