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Asian shares down as Bernanke says Fed could scale back its bond purchases

The Canadian PressJune 20, 2013 02:31
MANILA, Philippines - Most Asian markets slid Thursday after the U.S. Federal Reserve said it could start scaling back its huge economic stimulus program later this year. The announcement Wednesday in Washington drew sharp reaction in financial markets, showing just how dependent investors have become on the Fed's easy money policies.

Fed sticks with bond purchases but offers brighter outlook for the economy

The Canadian PressJune 19, 2013 15:01
WASHINGTON - Chairman Ben Bernanke ended weeks of speculation Wednesday by saying the Federal Reserve will likely slow its bond-buying program later this year and end it next year if the economy continues to improve. The Fed's bond purchases have helped keep long-term interest rates at record lows. A pullback in the Fed's purchases would likely lead to higher rates on mortgages and other consumer and business loans.

Loonie slides, U.S. bonds, greenback advance on stimulus cutback expectations

The Canadian PressJune 19, 2013 11:30
TORONTO - The Canadian dollar closed sharply lower Wednesday after the U.S. Federal Reserve said that it would maintain the pace of a key stimulus program. The central bank said after its two-day interest rate meeting that it will continue to purchase US$85 billion in bonds every month to keep long-term interest rates at record lows. But the greenback gained ground and bond yields advanced as the central bank also offered a more optimistic outlook for the U.S. economy and job market, raising expectations that the Fed is moving closer to tapering its purchases.

Instant View: Fed to keep buying bonds, boosts 2014 forecasts

June 19, 2013 16:31
(Reuters) - The Federal Reserve on Wednesday said it would keep buying $85 billion in bonds per month and gave no explicit indication that it was close to scaling back the program, despite intense market speculation it could soon start drawing it to a close.

Bank of Canada in uncharted territory, says new chief Poloz

June 19, 2013 16:03
By Euan Rocha and Peter Henderson BURLINGTON, Ontario (Reuters) - The Bank of Canada cannot rely on its usual models to assess the economy because of unexpectedly high levels of uncertainty, with the biggest risks coming from abroad, the new central bank chief, Stephen Poloz, said on Wednesday. Answering audience questions after his inaugural speech, Poloz said the central bank was in "uncharted territory" and called for direct feedback from those doing business on the ground in order to better understand what is happening.

Federal Reserve foresees lower US unemployment and inflation this year and next

The Canadian PressJune 19, 2013 15:00
WASHINGTON - The Federal Reserve expects the U.S. unemployment rate to fall faster this year and next than it did in March. The Fed now predicts unemployment will fall to 7.2 per cent or 7.3 per cent at the end of 2013 from 7.6 per cent now. It thinks the rate will be between 6.5 per cent and 6.8 per cent by the end of 2014, better than its previous projection of 6.7 per cent to 7 per cent.

BOJ's Kuroda says will shift policy if economy changes

June 19, 2013 03:01
By Leika Kihara TOKYO (Reuters) - Bank of Japan Governor Haruhiko Kuroda said the central bank will shift monetary policy if economic conditions change sharply in the future, leaving the door open for further monetary stimulus if needed to pull the country out of deflation. Kuroda said the central bank will make the utmost effort to stem volatility in the bond market and avoid any sharp rises in yields through measures such as flexible market operations.

Canadian dollar down, markets look to Fed meeting for reassurance about stimulus

The Canadian PressJune 17, 2013 10:02
TORONTO - The Canadian dollar closed lower Monday as traders looked for clarity on whether the U.S. Federal Reserve thinks economic conditions are favourable enough to start easing up on some stimulus. The loonie surrendered early gains to slip 0.08 of a cent to 98.26 cents US. Markets have been volatile since late May when Fed chairman Ben Bernanke said the U.S. central bank would consider cutting back on its US$85 billion of bond purchases each month if economic data — particularly job growth — improved.

Rates mixed at US Treasury auction with 6-month bills dropping to lowest since early 2012

The Canadian PressJune 17, 2013 16:31
Interest rates on short-term Treasury bills were mixed in Monday's auction with rates on six-month bills falling to the lowest point since early 2012. The Treasury Department auctioned $30 billion in three-month bills at a discount rate of 0.045 per cent, unchanged from last week. Another $25 billion in six-month bills was auctioned at a discount rate of 0.075 per cent, down from 0.080 per cent last week.The six-month rate was the lowest since these bills averaged 0.070 per cent on Jan. 23, 2012.

India leaves rates unchanged, warns of inflationary risks

June 17, 2013 05:31
MUMBAI (Reuters) - The Reserve Bank of India kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices. The RBI also called for vigilance over global economic uncertainty, citing the risks of a reversal of capital flows from emerging markets. Such outflows would exacerbate the country's high current account deficit.
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