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Monetary Policy

OECD inflation hits 3.5%

CPI inflation in the 30 member economies of the Organisation of Economic Co-operation and Development (OECD) rose to 3.5% in the year to March, up from 3.4% the previous month.

Japan lowers growth forecast

The Bank of Japan has chopped more than half a point off its growth estimate for 2008 and warned that in a highly uncertain climate, downside risks to the economy could further limit expansion.

OMO changes must temper money-market woe: King

Mervyn King, the governor of the Bank of England, said the central bank must ensure its revised system for open market operations leads to overnight interbank rates remaining close to its official rate regardless of financial market conditions.

Trichet remains firm on inflation

In all circumstances, but even more in times of heightened uncertainty in global financial markets, a strong commitment to price stability over the medium term is essential, said Jean-Claude Trichet, the president of the European Central Bank (ECB).

Big rate hike in Serbia

The National Bank of Serbia has raised its key policy rate to 15.25% from 14.5%. Radovan Jelasic, the governor of the central bank, said the move came in response to rising inflation, caused by growing salaries, record oil prices and political crisis.

Sentance: pound matters for monetary policy

The weakening pound is adding to the upward pressures on costs and prices from global markets, said Andrew Sentance, a member of the Bank of England's rate-setting committee, in a speech to the Confederation of British Industry.

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