BOJ expands asset purchase program – inflation target unchanged

20 Dec

Asia Wrap Thursday 20 Dec. 2012:

  • New Zealand Q3 GDP +0.2% (vs. +0.4% expected)
  • New Zealand December ANZ Business Confidence falls to 22.7 (vs. 26.4 in November)
  • Australia: The RBA slowed its pace of $A sales in Nov. to A$117 million (outright AUD sales lowest in 5 months), revealed the December Quarter RBA Bulletin
  • Australia: Treasurer Swan said a budget surplus this year was “unlikely”,  effectively dumping the government’s commitment to the surplus

Swan has dumped the surplus commitment – Surplus “unlikely”:

  • Lower tax revenues blamed: lower corporate profits
  • Government spending has been restrained
  • Terms of trade lower
  • Weak global economy
  • Strong budget position still
  • Inflation is contained

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