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Brazil bets on stronger recovery in second half

By Alonso Soto and Luciana Otoni BRASILIA (Reuters) - The Brazilian government is betting the economy will shift into higher gear in the second half of the year as business confidence improves and stimulus measures take hold, a senior member of the administration told Reuters. The recovery of Latin America's largest economy remains uneven with investment slowly rising and industrial output still patchy, fueling expectations of a third straight year of lackluster economic growth.

India cuts interest rates, says little room for more easing

By Suvashree Dey Choudhury and Tony Munroe MUMBAI (Reuters) - India's central bank cut its benchmark interest rate by 25 basis points on Friday for the third time since January, as expected, as growth slows and inflation ebbs, but said there is little room to ease monetary policy further, disappointing markets. The Reserve Bank of India trimmed the repo rate to 7.25 percent, its lowest since May 2011, and kept the cash reserve ratio (CRR) for banks unchanged at 4 percent, also in line with expectations.

Inflation angst evaporates in race for returns

By Mike Dolan LONDON (Reuters) - For all the trillions of dollars-worth in new money that central banks are printing, financial markets seem to be signaling that fears of rampant global inflation are unfounded. Over the past month, investors have devoured virtually any fixed income securities on offer, from the U.S. Treasury to tech giant Apple, debt-laden euro sovereigns Italy or Slovenia and even debut bonds from exotic African countries like Rwanda.

China's unsteady economy seen holding April inflation in check

BEIJING (Reuters) - Subdued factory and investment growth probably capped China's inflation in April and depressed producer prices for a 14th consecutive month, a Reuters poll showed, clouding the outlook for the Chinese economy. And risks that China's factory and investment growth in April may miss even conservative forecasts are mounting after surveys of the country's manufacturing and services industries cooled unexpectedly last month.

With caution, Japan's neighbors welcome 'Abenomics'

By Rajesh Kumar Singh and Tetsushi Kajimoto GREATER NOIDA, India (Reuters) - Emerging Asian neighbors are bracing for a surge in capital flows after Japan's unprecedented bid to pump up its long-moribund economy but most believe the upside of cheap cash and a stronger Japanese economy outweighs the risks.

Abe says gov't to check impact of BOJ easing on people's livelihoods

Prime Minister Shinzo Abe said Tuesday that the government will carefully examine at meetings of its key economic panel whether the Bank of Japan's drastic monetary easing has begun to improve people's livelihoods. Abe made the remarks amid growing concern that the central bank's easing could merely drive up consumer prices without wage growth, as the BOJ has pledged to achieve a 2 percent inflation target within two years though the country has long been mired in deflation.

Hashimoto clarifies remarks on "comfort women" after flak

Osaka Mayor Toru Hashimoto on Wednesday sought to clarify his remarks on a system to recruit women into sexual servitude for Japan's soldiers during World War II, saying he personally does not condone the scheme. Two days after he made controversial remarks that the so-called comfort women were "necessary to maintain discipline" in the Japanese military, Hashimoto told reporters he simply stated a fact that people at the time had that kind of view.

Fed's Lacker: April jobs data shows need to taper bond buying

By Alister Bull RICHMOND, Virginia (Reuters) - Stronger U.S. job creation in April reinforces the argument to scale back Federal Reserve bond purchases, one of the central bank's most hawkish policy-makers said on Friday, after better than expected data eased concern the U.S. economy had stumbled. "I don't think there is any question...that we've seen substantial improvement in the labor market outlook over the last 6 months," said Jeffrey Lacker, president of the Federal Reserve Bank of Richmond.

Australia cuts interest rate to record low 2.75 pct

Australia's central bank cut interest rates to a record low of 2.75 percent Tuesday, citing weak domestic inflation coupled with a persistently high dollar as investment in the key mining sector hits its peak. The Reserve Bank of Australia's shock decision to slash 25 basis points takes the official cash rate to never-before-seen lows, and is aimed at priming those areas struggling as the economy transforms away from mining.

Australia cuts interest rate to record low 2.75 pct

Australia's central bank cut interest rates to a record low of 2.75 percent Tuesday, citing weak domestic inflation coupled with a persistently high dollar as investment in the key mining sector hits its peak. The Reserve Bank of Australia's decision to slash 25 basis points takes the official cash rate to never-before-seen lows, and is aimed at priming those areas struggling as the economy transforms away from mining. ajc/mp/pdh
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