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How bold a move from the ECB?

According to this article published Friday 12 May, a rate increase at the European Central Bank's upcoming meeting is almost certain, with estimates ranging between 25 and 50 basis points.

ECB's Trichet on two successes of the euro

In the speech 'Two successes of the euro: the single monetary policy and European financial integration' given on 11 May Jean-Claude Trichet of the ECB said that the central bank is on high alert over inflationary dangers, is exercising "strong vigilance…

Weber on oil price shocks and monetary policy

In the speech 'Oil price shocks and monetary policy in the euro area' given on 11 May Axel Weber of the Deutsche Bundesbank said the inflationary risks connected with runaway record oil prices are likely to increase as the economic recovery in the…

Shabibi says Iraq's reforms are on track

The governor of the central bank of Iraq said on Thursday 11 May that solid progress was being made in reforming the country's financial sector despite ongoing disruptions and that enough reserves existed to defend the currency.

Turkey to stick with floating lira

The governor of Turkey's central bank said Friday 12 May that the bank would maintain its floating currency system but was closely monitoring foreign currency market developments, the Anatolia news agency reported.

Chinese economists want increased gold reserves

Some Chinese economists are urging the government to increase its gold reserves to 2,500 tons from the current 600 tons because the country's foreign exchange reserves had become the world's largest, an official industry newspaper reported this week.

ECB pledges price stability, oil risks worsen

The article "ECB bankers pledge price stability, oil risks worsen" published Thursday 11 May says that the oil shock threatens to push up core inflation in the eurozone, a danger the European Central Bank ignores at its peril.

RBI's Reddy on global imbalances

In the speech 'Global imbalances - An Indian perspective' given on 11 May Dr.Y.V.Reddy of the Reserve Bank of India said any large adjustments in major currencies and global interest rates would have a significant impact on the economy.

Comment: Flawed convergence criteria?

Willem Buiter and Anne Sibert, two London-based academics, have slammed the Maastricht criteria for entry into the eurozone. They point to a number of inconsistencies in way the conditions are applied and suggest that the current formulation "makes no…

ECB's Trichet on European financial integration

In the speech 'The process of European financial integration' given on 11 May Jean-Claude Trichet of the ECB said European financial integration still lags behind, particularly in retail banking and financial infrastructure services, despite the progress…

Fed's Kohn on investing in payment innovations

In the speech 'Investing in payment innovations: A Federal Reserve perspective' given on 11 May Donald Kohn of the Federal Reserve said changing electronic payment systems benefit both institutions and consumers, but also expose them to new risks,…

National Bank of Belarus - Annual Report 2004

According to the National Bank of the Republic of Belarus's Annual Report 2004, the economic situation in 2004, on the whole, was characterised by a deceleration of inflationary and devaluation processes and higher rates of GDP growth.

China's yuan progress 'far too little'

The US government on Wednesday 10 May did not accuse China of manipulating the value of its currency, but said Beijing had made "far too little progress" in adopting a flexible exchange rate.

Comment: US Treasury diplomacy

In what has been billed as a key moment in American economic diplomacy, the US Treasury this week resisted temptation and political pressure by deciding not to formally accuse China of currency manipulation.

Fed raises rates to 5%

The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."

SARB Monetary Policy Review, May 2006

The South African Reserve Bank published its Monetary Policy Review for May 2006 on Thursday 11 May. Forecasts suggest that the inflation outlook has improved significantly, and there is evidence that inflation expectations and wage settlements are…

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