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New data poses US rate cut dilemma
US - For the fourth time this year the US central bank, the Federal Reserve, has to decide by just how much it will cut interest rates.
Closing speech of 2001 ADB annual meeting
SPEECH - The Asian Development Bank (ADB) concluded its 34th annual meeting of the board of governors on 11 May. The meeting, which was held in Hawaii, finished with a speech from the President of ADB Tadao Chino.
Fed expected to make another US rate cut
US - The Federal Reserve is expected to make another anti-recession move on 15 May with an interest rate cut - to try to boost the ailing U.S. economy.
Bank Indonesia revises up 2001 inflation forecast
INDONESIA - Indonesia's central bank said on 14 May it expected to revise up its 2001 inflation forecast due in part to the weak rupiah, but added the rate should remain below 10 percent.
IMF urges Gulf states to open up
BAHRAIN - The International Monetary Fund (IMF) has urged the Persian Gulf Arab states to end subsidies and open up to foreign investment.
Australian rates likely to remain unchanged
AUSTRALIA - Australia's central bank governor said on 11 May that interest rates will be cut again only if there is a dramatic threat to the U.S. and global economies.
The "too-big-to-fail" policy in Japan
RESEARCH - Mark Spiegel and Nobuyoshi Yamori of the Federal Reserve Bank of San Francisco analyse evidence from market equity values of the too-big-to-fail" policy in Japan in a working paper for the economic research department of the Federal Reserve…
The effect of pessimism and doubt on asset returns
RESEARCH - Andrew Abel analyses the effects of pessimism and doubt on asset returns in a working paper published by the Federal Reserve Bank of Philadelphia.
Roles of Thai central bank likely to be separated
THAILAND - Thai Finance Minister Somkid Jatusripitak said on 14 May that the central bank of Thailand will likely be separated into two independent organisations under a revised restructuring plan that he drafted.
Yugoslavia re-admitted to World Bank after 8 years
YUGOSLAVIA - Yugoslavia rejoined the World Bank on 8 May, eight years after being expelled for its involvement in Balkan wars, noting that the move paves the way for future loans to help the impoverished country's economic recovery.
Rules tightened by Philippine central bank
MANILA - The Philippine central bank said on 11 May that it has expanded the duties and responsibilities of the board of directors of banks to strengthen the banking system.
IMF Concludes Article IV with South Africa
SOUTH AFRICA - On 19 March 2001, the Executive Board of the International Monetary Fund concluded the Article IV consultation with South Africa.
Financial Policy and Central Banking in Japan
BOOK - A new book by T. Cargill, M. Hutchison and T. Ito analyses how the bank-dominated financial system - a key element of the oft-heralded "Japanese economic model" - broke down in the 1990s and spawned sweeping reforms.
Former Bank of Thailand governors face prosecution
According to Thailand's deputy finance minister, senior former officials from the Bank of Thailand my soon face prosecution for their role in the 1997 currrency crisis.
Central Banking Journal May 2001 edition now out
Central Banking Vol. XI, No. 4 was published 8 May 2001. This edition includes exclusive interviews with Maurice O'Connell, Governor of the Central Bank of Ireland, Syahril Sabirin, Governor of Bank Indonesia and Hans Tietmeyer, former Bundesbank…
IMF will lose a third senior official
WASHINGTON - Jack Boorman is planning to leave the IMF, probably later this year. Fund officials were quick to stress that Mr Boorman had been at the IMF for 25 years and that his leaving was not a shock.
Central banks not to blame for weak gold price
According to a study into the gold derivatives market by Professor Anthony Neuberger of the London Business School, the five-fold increase in gold lending since 1990 cannot account for the slump in the gold price over the period.
Banks refusing funds from BOJ
JAPAN - Japanese monetary policy encountered a significant hitch yesterday, 9 May, after it failed to persuade banks to accept any more funds. The money was virtually free as interest rates in Japan are close to zero.
Financial Stability and Central Banks
BOOK - This book is published by the Bank of England and includes papers presented at the banks 7th annual Central Bank governors' symposium in June 2000. The 2000 symposium considered financial stability and the role of central banks.
Inflation still main concern of ECB
GERMANY - European Central Bank council member Vitor Constancio said on 10 May that inflation still remained the bank's main concern.
Bank of England revamps its web site
UK - The Bank of England has transformed its online presence with a complete makeover to its external website and details on the Centre for Central Banking Studies handbooks.
ECB cuts interest rates by 0.5%
Summary - The European Central Bank (ECB) has made a surprise cut in its key interest rate reducing it by a quarter point to 4.5%.
Bank of England lowers base rate
UK - The Bank of England announced at 12pm on May 10 that the UK's main interest rate measure, the repo rate, would be reduced by 0.25% to 5.25%.
Central bank governor says China is stabilising
CHINA - Dai Xianglong, the governor of the central bank of China, said on 9 May that his country had made the world economy more stable.