Sat, Aug 31, 2019 page10

• World Business Quick Take

  • Agencies
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  JAPAN

  BOJ cuts bond purchases

  The Bank of Japan (BOJ) made the biggest cut to its purchases of five-to-10-year bonds since starting yield-curve control in 2016, as the global debt rally drove the rate on the nation’s benchmark out of its target range and closer to record lows. The central bank offered to buy ￥400 billion (US$3.8 billion) in the key maturity zone, down from ￥450 billion at its previous regular operation. The nation’s 10-year yield rose after the operation, with yields on similar-maturity US Treasuries also moving higher. Speculation that the BOJ would step in to halt the slide in yields had intensified as the benchmark yield dropped to within 1 basis point of an all-time low of minus-0.3 percent. Market watchers consider tapering bond purchases as the easiest option for the central bank.

  SOUTH KOREA

  Interest rate maintained

  The Bank of Korea yesterday left its key interest rate unchanged as it monitors the effect of last month’s rate cut amid rising economic risks. The decision to keep the seven-day repurchase rate at 1.5 percent was forecast by 22 of 25 economists surveyed by Bloomberg. Three expected a cut to 1.25 percent. A majority of analysts expect borrowing costs to be lowered later this year, a separate Bloomberg News survey showed. Some economists had said consecutive rate cuts were unlikely, as they would have suggested that policymakers thought the economy was in a critical state, an impression officials are keen to avoid. Standing pat would also offer time for the central bank to assess the effect of the US Federal Reserve’s decision next month. “If the Fed acts in September, the Bank of Korea will probably go ahead with a cut in October,” said An Young-jin, an economist at SK Securities. In a statement after the decision, the Bank of Korea said that the uncertainties over its growth and inflation forecasts had increased. It cited the US-China trade dispute and geopolitics as risks to growth.

  TECHNOLOGY

  Huawei missing Google apps

  Huawei Technology Co’s (華為) upcoming flagship Mate 30 smartphone is to launch next month without Google apps, creating a disadvantage for the Chinese tech giant hit by US sanctions. A Google spokesperson on Thursday confirmed that the California firm would not be able to deliver licensed applications such as Gmail, Maps and YouTube for the new device because of sanctions imposed by US President Donald Trump. As a result, Huawei is only able to pre-load the open-source Android operating system. The move could be another hit for Huawei, the tech powerhouse that became the No. 2 global smartphone vendor before sanctions imposed by Washington over national security concerns, which prevent the export of US technology.

  UNITED KINGDOM

  Home prices stay put

  House-price growth remained stuck in a subdued pattern this month as worries about the economy knocked consumer confidence lower. The Nationwide Building Society said that the values were unchanged on the month and rose 0.6 percent from a year earlier. That is a ninth straight month of sub-1 percent increases. The release came as GfK SE said that consumer sentiment fell to match its lowest level in six years. With a no-deal Brexit possible, households are becoming more concerned about their finances and the broader economy. Their outlook for the latter is now near its worst since 2011. They could also be fretting about the effect of the weaker pound on inflation and their shopping bills.
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