National Economy Made a Good Start in the First Quarter
In the first quarter, faced with grave and complex international environment as well as arduous tasks to advance reform, development and ensure stability at home, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping as the core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, put economic stability the top priority and pursued progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated the efforts to foster a new ... (full story)
China’s economy grew 4.5% in the first quarter, beating expectations
China’s first-quarter gross domestic product rose sharply while global peers face slowing growth as central banks hike rates to tame inflation. GDP grew by 4.5% in the first quarter, China’s National Bureau of Statistics said Tuesday. That was higher than the 4% forecast in a Reuters poll of economists. The economy expanded 2.9% in the fourth quarter of 2022. China’s growth has been under the spotlight as it reopens after ending most of its strict Covid restrictions that were in place for nearly three years. The economy grew 3% in 2022, less than Beijing’s official target of around 5.5% set in March last ... (full story)
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tweet at 9:43pm: BOJ'S UCHIDA: CENTRAL BANKS WILL NOT DEFAULT. tweet at 9:48pm: DEPUTY BOJ GOVERNOR UCHIDA: FINANCIAL CONSTRAINTS WILL NOT JEOPARDISE THE BOJ'S ABILITY TO IMPLEMENT MONETARY POLICY.BOJ's Uchida: Fiscal constraints won't undermine ability to carry out monetary policy So far, they're not really giving anything away ahead of next monetary policy meeting decision at the end of next week. There are some quarters in the market expecting the BOJ to tweak its yield curve control settings further (or remove it altogether) but it will be a surprise to see them act so soon.
Members commenced their discussion of the global economy by noting that inflation remained high and well above central banks’ targets. Inflation in many economies had declined from earlier peaks but progress in returning inflation to target had slowed. Recent monthly core inflation data had been higher than expected in a range of advanced economies. Nevertheless, inflation in advanced economies was still expected to decline over coming quarters as economic activity slowed and input price pressures continued to dissipate. Indicators of domestic demand across advanced economies had been mixed. Retail sales had increased in early 2023 in a few economies, although volumes generally remained below their peaks. The housing sector remained subdued in many economies, reflecting the tightening of monetary policy over the prior year. Most of these indicators pre-dated the financial stability concerns and financial market volatility prompted by bank failures in the United States and Switzerland. However, members observed that very timely measures of activity in the services sector had been resilient; survey measures of services output had remained solid in March in many countries and household sentiment in the United States had been little affected. At the same time, some commodity prices had declined. Members noted that labour markets had remained tight, but less so than a few months earlier. Employment growth had moderated in a number of advanced economies over the preceding six months. Although job vacancy rates had declined, they remained unusually high. Central banks and Consensus Economics’ panel were forecasting that unemployment rates would increase gradually from their multi-decade lows in many advanced economies. Wages growth had slowed in the United States and United Kingdom but remained above rates consistent with their central banks’ inflation targets. Domestic economic activity in China had begun to recover rapidly in the early part of the year from earlier COVID-19-related disruptions. Services sector activity, retail sales and industrial production had all recovered strongly in the first two months of 2023. Leading indicators suggested an improvement in property-related tweet at 9:32pm: RBA Minutes: Board Considered Rate Hike At April Meeting, Before Deciding To Pause -Agreed Stronger Case To Pause And Reassess Need For Tightening At Future MeetingsRBA minutes show strong case to pause and reassess need for tightening at future meetings • Board considered rate hike in April, before deciding to pause. • Agreed that there is a stronger case to pause and reassess the need for tightening. • Assessing data on inflation, jobs, consumer spending and business conditions. • Inflation is still too high. • Labour market had loosened a little but is still very tight. • Bank stress causing tighter financial conditions globally, a headwind for the world economy. It is interesting to note that they did "consider" a rate hike earlier this month but let's be real, actions speak louder than words - especially at this point in the tightening cycle. In case you need a reminder, they also offered up a subtle change to the forward guidance as highlighted at the time here.
Regional equities were mostly quite upbeat despite the lukewarm lead from Wall Street, especially China and Hong Kong, both up well over 1%. The ASX 200 closed +0.3%. AUD/USD ...
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AUD/USD pares the first daily gains in three around 0.6710, after an initial jump to 0.6720, as strong China growth data joins RBA Minutes-led optimism during early Tuesday. That ...
China is willing to work with Russia to make new contributions to maintaining global and regional security and stability, State Councilor and Defense Minister Li Shangfu said on ...
The US consumer price index for March showed signs of cooling inflation. Headline CPI rose 5% year-over-year, the smallest increase since May 2021. However, core CPI increased by ...