Bank Indonesia announced a 50 basis point interest rate cut to 11.75%. Bank Indonesia's Governor Burhanuddin Abdullah said the decision was taken in view of lower external risks and surveys indicating improving prospects for the economy. Inflation this year is expected to be around 8% and around 6% in 2007, he said.
Korea’s Deputy Finance Minister Kim Seokdong said he would urge the Bank of Korea to re-evaluate any interest rate hike. Seokdong said the central bank should consider downside economic risks to the domestic economy, including high oil prices. The central bank last increased interest rates to 4.25% in June.
The total assets of Colombia's private pension system grew 30.5% year-on-year to 38 trillion pesos ($15.8 billion) at the end of May, regulator Superfinanciera said. About 47% of assets were invested in government securities. Colombia has six pension fund managers operating in the private system. Porvenir is the largest, managing 26.6% of the system's total assets and 27.3% of total affiliates.
Turkey’s industrial production was up 11.4% year-on-year in June, above a forecast of 8.1%. In the first half of the year industrial production grew by 6.5%, against 4.5% in the same period last year. Production in the manufacturing sector rose 6.3% in the first half of the year, mining and utilities were up 10.9%, and export-oriented sectors, such as car manufacturing and chemicals were up 21.2%. Textiles and apparel were up only 2.8% year-on—year, facing stiff competition China.