Richard Cayne at Meyer International in Bangkok Thailand comments that Consumer prices in Japan rose at the fastest pace in five years in October, suggesting policymakers’ attempts to end years of deflation are working.
Consumer prices, excluding food, rose 0.9% from a year earlier. Prices have now risen for five months in a row. Japan has been battling deflation, or falling prices, for best part of the past 20 years notes Richard Cayne Meyer.
It is seen as a major drag on its economy and policymakers have unveiled a series of measures to end the cycle.
While falling prices may sound good to those experiencing inflation, they hold back economic growth as consumers and businesses tend to put off purchases in the hope of getting a cheaper deal in the future, which hurts domestic demand. Richard Cayne Meyer comments that now with prices on the rise Japanese will need to consider inflationary effects far more than over the past number of years.
On Brazil Richard Cayne Meyer remarks how the central bank has raised its benchmark interest rate to 10% from 9.5%, the sixth time in a row that it has put up borrowing costs.
The latest rise has taken the key rate to the highest level since March 2012.
The rises come as Brazil has been trying to rein in inflation. Consumer prices in the country rose by 5.8% in October from a year earlier, above policymakers’ 4.5% target.
U.S. – The Federal Reserve will probably focus on assuring investors it will maintain low interest rates as it prepares to reduce bond purchases, according to Richard Cayne Meyer.
The increased effort aims in part to avoid a repeat of the sell-off in global assets this year after Fed officials signaled they may soon start to taper the monthly $85bn in bond purchases, was more of a jolt to the markets than the central bank had expected.
Richard Cayne Meyer comments on Spain – The economic outlook for Spain has improved, says ratings agency Standard and Poor’s (S&P).
The debt-laden country, whose banks came under severe pressure during the financial crisis, has been struggling to improve its public finances. S&P raised its assessment from negative to stable and re-affirmed its BBB- long-term sovereign credit rating.
However, S&P cut its credit rating for the Netherlands from the top-level AAA rating to AA+.
This demotion leaves only Germany, Luxembourg and Finland as the remaining eurozone countries with the top rating of AAA, according to S&P.
Richard Meyer Cayne originally from Cote St Luc, Montreal, Quebec Canada currently resides in Bangkok Thailand and runs the Meyer Group of Companies. Prior to which Richard was residing in Tokyo Japan for over 15 years and is one of the founding members of Asia Wealth Group Holdings Ltd a London, UK Stock Exchange listed Financial Holdings Company.