Daily Archives: March 4, 2010

The central bank of Malaysia has increased the overnight policy rate from 2 to 2.25 per cent, with the floor and ceiling rate trading band moved to 2 and 2.5 per cent. Kuala Lumpur had hinted heavily at the last rate meeting, at which rates were held. Recovery is thought to be entrenched now, with strong growth and improving internal and external demand. The Malaysian economy grew by 184bn ringgit ($54.6bn) in Q4, up 6.5 per cent on the previous quarter.

Robin Harding

Backward-looking surveys of corporate investment are precisely the kind of tree that makes it hard see the wood when looking at economic data. The quarterly Ministry of Finance survey is important in Japan for one reason, however: it is the main source of revisions – sometimes very large revisions – to GDP estimates. The second estimate for Q4 2009 GDP in Japan is due out next week.

Take Q3 last year, for example. The initial estimate on November 16th was growth of 1.2 per cent on the previous quarter; about three weeks later that was revised down to 0.3 per cent. Read more

By David Oakley, capital markets correspondent

Athens will sell about $5bn today in the 10-year bond market. Market reaction – and pricing – of this deal will be key. Greece needs to raise about $20bn in the coming three months. The riskier the perception of debt, the higher the cost of borrowing. The four banks managing the deal are HSBC, Barclays, Nomura, National Bank of Greece and Piraeus‬ Bank. Read more on ft.com.