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Monetary Policy

BoJ's Fukui on quantitative easing

In a speech given on 1 June Toshihiko Fukui of the Bank of Japan said the central bank's quantitative easing policy, which lasted for nearly five years till March 2006, helped in bringing recovery back to the deflation-hit Japanese economy.

BOJ's Fukui sees slow rate rises

Bank of Japan governor Toshihiko Fukui said the central bank would raise interest rates slowly and would proceed without focusing on one particular economic indicator, Bloomberg News reported on Thursday 1 June.

Comment: Fed ponders communication strategy

The minutes of the US Fed's last monetary policy meeting, released this week, have enhanced the perception of an uncertain FOMC, and strengthened the view that further rate increases will be required. A close look at recent events show that the issue of…

PBOC to increase yuan flexibility

The People's Bank of China said in its first quarter monetary report that it will increase the flexibility of the yuan's exchange rate mechanism and intervene less in determining the currency's value.

ECB's Papademos on globalisation, inflation

In the speech 'Globalisation, inflation, imbalances and monetary policy' given on 25 May Lucas Papademos of the ECB said that globalisation had helped contain prices in the past, but the risks to inflation were now rising due to buoyant world growth.

Fed can't ignore stock, home prices says Bernanke

Fed chairman Ben Bernanke said in a written response to a senator that the US central bank cannot turn a blind eye to price changes for stocks and homes when deciding on interest rates, but should take action only when they threaten the overall economy.

Ingves on the Riksbank and monetary policy

In the speech 'The Riksbank and monetary policy' given on 23 May Stefan Ingves of the Sveriges Riksbank reiterated that monetary policy will need to be less expansionary in future so that inflation does not exceed the 2% target.

Blanchflower is 'no shrinking violet'

The Bank of England Monetary Policy Committee's latest member, David Blanchflower, told the Treasury Select Committee on Wednesday 24 May that his commitment to the rate setting MPC will form his "primary responsibility."

Bank of Canada raises rates

The Bank of Canada announced Wednesday 24 May that it is raising its target for the overnight rate by one-quarter of one percentage point to 4 1/4 per cent. The move had been widely expected.

BOJ member sees reserve cut problem

According to minutes of the Bank of Japan's April 10-11 board meeting, published Wednesday 24 May, a policy maker said a rapid reduction in reserves by the central bank may spur speculation of an interest-rate increase from near zero.

BOJ's Fukui sees rates rising slowly - report

The Bank of Japan will raise interest rates gradually to keep inflation under control while also giving the economy time to recover, the Nihon Keizai Shimbun quoted BOJ governor Toshihiko Fukui as saying in an interview published Tuesday 23 May.

New MPC member set for grilling

The newest member of the Bank of England's Monetary Policy Committee is likely to face some tough questions when he faces MPs for his "confirmation" hearing on Wednesday 24 May, the FT reported.

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