Week of February 19, 2012 thru February 25, 2012

China Cuts Reserve Requirement For Second Time


BEIJING (MNI) - China's central bank said Saturday night it will cut the required reserve ratio for the second time in the current cycle to ease liquidity condition as part of the government efforts to fine-tune monetary policy.

The 50 basis points cut will lower the deposit reserve ratio for China's largest financial institutions to 20.5%, when it takes effect on February 24.

Analysts have been revising down their expectations for the pace of which government will loosen after a surprising high January consumer price index reading and after central bank report last week sounded a hawkish tone on inflation.

The PBOC was said to have injected liquidity into the banking system last Friday via reverse bond repurchase agreement to bring down money rates.

China House Prices Down For Fourth Month On Govt Curbs


BEIJING (MNI) - Chinese house prices fell for a fourth month on a sequential basis in January, providing fresh evidence that the property market is cooling nationwide on the back of government tightening.

Nationwide, prices rose 0.5% in January, down from December's 1.6% growth, +2.3% in November and +2.9% in October, according to a weighted average of prices in the 35 largest cities calculated by Market News International.

But prices dropped 0.16% m/m last month compared with -0.29% in December, -0.26% in November and and October's 0.14% fall. Prices were flat m/m in July, August and September.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

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24-Feb 1345/0845 SEC Chair Mary Schapiro speaks to the Practising Law Institute in Washington.

24-Feb 1500/1000 Bank of Canada Gov. Mark Carney speaks to U.S. Monetary Policy Forum in New York.

24-Feb 1545/1045 St. Louis Federal Reserve Bank President James Bullard and San Francisco Federal Reserve Bank President John Williams discuss a report on housing and monetary policy at the U.S.

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

-------------------------------------------------------------------------

24-Feb 1345/0845 SEC Chair Mary Schapiro speaks to the Practising Law Institute in Washington.

24-Feb 1500/1000 Bank of Canada Gov. Mark Carney speaks to U.S. Monetary Policy Forum in New York.

24-Feb 1545/1045 St. Louis Federal Reserve Bank President James Bullard and San Francisco Federal Reserve Bank President John Williams discuss a report on housing and monetary policy at the U.S.

Full: Posen: BOE Inflation Report Forecast Close To His Own


--Adds Detail, Quotes To Earlier Versions

WARWICK (MNI) - Bank of England Monetary Policy Committee member Adam Posen said the cetral forecast in the February Inflation Report was pretty close to his own.

The February Inflation Report showed inflation rising to around 1.8% in two years time and up to 1.9% in three years' time, close to the 2.0% target. This projection has persuaded some analysts the MPC will not carry out any more quantitative easing, and although Posen is seen as the arch-dove he did not take issue with it.

Update3: Posen:BOE Inflation Report Forecast Close To His Own


WARWICK (MNI) - Bank of England Monetary Policy Committee member Adam Posen said the cetral forecast in the February Inflation Report was pretty close to his own.

The February Inflation Report showed inflation rising to around 1.8% in two years time and up to 1.9% in three years' time, close to the 2.0% target. This projection has persuaded some analysts the MPC will not carry out any more quantitative easing, and although Posen is seen as the arch-dove he did not take issue with it.

Speaking to reporters here Posen said "November's forecast and this forecast are very close to where I would be ...

Update: Posen: BOE Inflation Report Forecast Close To His Own


WARWICK (MNI) - Bank of England Monetary Policy Committee member Adam Posen said the cetral forecast in the February Inflation Report was pretty close to his own.

The February Inflation Report show inflation rising to around 1.8% in two years time and up to 1.9% in three years' time, close to the 2.0% target. This projection has persuaded some analysts the MPC will not carry out any more quantitative easing, and although Posen is seen as the arch-dove he did not take issue with the forecast.

Speaking to reporters here Posen said "November's forecast and this forecast are very close to where I would be ...

White House Sees 2 Million New Jobs In 2012, 167k/month


--FOMC/CBO Forecasts 'Out Of Date" Given Encouraging Jan Payrolls
--Economic Recovery At 'Moderate Pace", Will Continue and Gather Speed
--Labor Market 'Gradually Improving', Remains Admin's Top Priority

WASHINGTON (MNI) - The White House Friday said it expected job growth of 2 million this year, above the 1.8 million jobs created last year, as part of its annual economic report to Congress.

The White House's Council of Economic Advisors, which crafted the report, did not update other forecasts included in the White House's FY'2013 Budget Report released earlier this week.

White House Remains Concerned About EU Risk To US,Global Econ


--'Significant Risks' Remain Despite Measures To Contain Crisis
--US Econ Performance To Depend In Part On Swift Resolution To Crisis

WASHINGTON (MNI) - The White House Friday served up a blunt assessment of the risks posed by the drawn out Eurozone debt saga, noting the risk of a "significant" impact on employment in the United States, and emphasized the importance to both the U.S. and global economies of a rapid resolution to the turmoil.

In a section of the administration's 2012 Economic Report of the President devoted to the euro area crisis and its implications for the U.S.

Posen: BOE's Inflation Report Forecast Close His Own


WARWICK (MNI) - Bank of England Monetary Policy Committee Adam Posen member Adam Posen said the cetral forecast in the February Inflation Report was pretty close to his own.

The February Inflation Report show inflation rising to around 1.8% in two years time and up to 1.9% in three years' time, close to the 2.0% target. This projection has persuaded some analysts the MPC will not carry any more quantitative easing, and although Posen is seen as the arch-dove he did not take issue with the forecast.