The IMF urged major economies to support global economic growth through lower interest rates. The IMF was slightly less upbeat about fiscal policies but supported a more expansionary stance here as well. The IMF also supports the fight against terrorism but does not want to uptake a supervision role on financial markets.
The Czech defense ministry will buy more of the controversial sub-sonic plane fighters. However, it will probably take a CZK 7bn loan to finance it. This loan is not included in the state budget and makes the whole budget discussion a joke, as any ministry may then finance itself from loans. Why not scrap the budget altogether?
Consumer prices fell 0.3% m-to-m in the US, bringing the annual CPI to 2.1% in October (2.6% in September). Fuel prices fell by massive 10.7% m-to-m.
The US industrial production fell by 1.1% m-to-m in October. Y-to-y drop was even deeper, -6.3%, as production has been falling for sixteen consecutive months.
The finance ministry expects the bad-loan Česká konsolidační agentura to lose CZK 188bn in 2001-2003. Last month, the Cabinet lowered its estimate of the CKA 2001's loss to CZK 36bn, as to lower the total public budget deficit in 2002. The rest of the CKA's losses will be reported, and paid, by the next government.