STOCK MARKET WATCH -- Wednesday, 7 March 2012

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33. Asian Central Banks Poised to Pause as Oil Adds Price Pressures: Economy

http://www.bloomberg.com/news/2012-03-06/asia-s-central-banks-may-be-nearing-end-of-rate-cuts-on-oil-risk.html

Asia-Pacific central banks will probably hold off on adding monetary stimulus this week as higher oil prices combine with diminishing concern of a euro- region meltdown to make the case for preserving firepower.

South Korea and New Zealand will hold interest rates tomorrow, according to all economists surveyed by Bloomberg News. Indonesia will keep its key rate at 5.75 percent the same day after an unexpected cut last month, while Malaysia will stand pat for a fifth meeting a day later, separate surveys indicated.

The 18 percent jump in crude oil since September risks spurring price pressures in a region that’s seen little slackening in job markets as employers retain workers even with exports moderating. A report today showing Australia’s economy grew at half the pace analysts projected last quarter reminds that further stimulus may yet be warranted later this year.

“Growth or inflation risks are not compelling enough to push central banks aggressively in any direction,” said Matt Hildebrandt, an economist at JPMorgan Chase & Co. in Singapore. “Central banks have probably shifted from growth concerns to being neutral.”