• Headline inflation came in at 7.25% YoY in June (as compared to our expectation
of 7.60% YoY), lower than previous month’s print of 7.55% YoY.
• China’s Premier Wen Jiabao said that growth momentum is weak but
Government measures to support growth are “bearing fruit” and current pace
of growth is within the target range.
• The IMF lowered its global economic forecasts as prolonged Eurozone debt
crisis weighed on global growth. The 2013 global growth forecast was
revised down to 3.9% from 4.1% estimated in April. India’s 2013 growth
projection was cut by 0.7 percentage points to 6.5%.
• US Federal Reserve Chairman Bernanke, on his second day of testimony to
US Congress said that the economy has “decelerated” in the first half of the
year and that the Fed is “prepared to take further action as appropriate”. He
also sought to assure lawmakers that the Fed can control inflation while
providing additional stimulus.
• German lawmakers voted in favor of Spanish banking sector bailout after Finance Minister Schaeuble assured that Spain
would remain liable for the aid and the German Parliament would be consulted on each step of the rescue