Intra-Day Market Moving New and Views: July 31, 2014

 
Intra-Day Market Moving New and Views

31 Jul 2014   01:05GMT

Statement released by the IMF quote:
'reiterates China 2014 GDP growth forecast at 7.4 pct, 2015 GDP growth at 7.1 pct;
appropriate for China to set 2015 GDP growth target at 6.5-7 pct;
some directors feel an even lower 2015 GDP growth target is appropriate for China;
China should not deploy broad stimulus unless GDP growth well under target level;
reiterates that yuan is "moderately undervalued";
weakness in China real estate sector poses near-term risks for economy; urgent for China to push reforms as current path of growth is unsustainable; near-term risks in china economy manageable due to gov't policy buffers.'


Yesterday, The Federal Reserve pressed ahead with its plan to wind down its bond-buying stimulus and upgraded its assessment of the U.S. economy, while reaffirming it is in no rush to raise interest rates.

The central bank cut its monthly asset purchases to $25 billion from $35 billion, leaving it on course to shutter the program this fall.

The Fed reiterated that it would likely keep rates near zero for a "considerable time" after its bond buying ends and restated that an "accommodative" policy was needed.

The Fed has kept overnight rates near zero since December 2008 and has more than quadrupled its balance sheet to $4.4 trillion through a series of bond purchase programs.

But it cited improving labor market conditions and declining unemployment and acknowledged rising inflation.