News in Brief
ECB’s Wunsch sees 4% rates possible
BLOOMBERG – European Central Bank Governing Council member Pierre Wunsch said market bets for interest rates to reach a 4% peak may prove accurate if underlying price pressures remain elevated.
How far borrowing costs must rise “depends very much on the evolution of core inflation,” the Belgian central bank chief said, referring to the measure of consumer-price growth that strips out items such as energy and food.
Hungary central bank rejects call to undo reserve policy change
REUTERS – Hungary’s central bank on Friday ‘firmly rejected’ calls by the country’s banks to undo a change in reserve policy, which lenders say will cost them over 100b forints ($281.28m) and could stifle lending.
Hungary’s Banking Association called on the central bank on Thursday to row back on a policy change curbing the interest paid on required reserves, just two days after Prime Minister Viktor Orban’s top economic aid piled pressure on the bank to start lowering borrowing costs.
Indonesia close to Abadi LNG deal with Pertamina
REUTERS – The Indonesian government hopes discussions with state energy company Pertamina over its acquisition of Shell’s stake in the Abadi liquefied natural gas (LNG) project will be finalised in the first half of this year, a senior energy official said on Friday.
Indonesia has long sought an investor to take over Shell’s 35% stake in what is also known as the Masela gas project after the company announced its intention to withdraw. Japanese energy company Inpex Corp leads the project with a 65% stake.