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Monetary Policy

Sweden's Rosenberg on monetary policy

Sveriges Riksbank deputy governor Irma Rosenberg gave a speech on Tuesday saying new information made available since January appears to confirm indications in December that the development of economic activity is stronger than expected.

Pianalto on economic forecasts and monetary policy

In the speech 'Economic forecasts and monetary policy' given on 13 February Sandra Pianalto of the Federal Reserve Bank of Cleveland said recent economic reports offer hints that the US economy may have rebounded from the weakness seen in the last three…

Albania to adopt inflation target

In this speech delivered in Vienna on January 18, 2006 the Governor of the Bank of Albania, Ardian Fullani, reiterates the central bank's intension to switch to fully-fledged inflation targeting.

Bank of Korea hikes rates again

The Bank of Korea raised its benchmark overnight call rate by 25 basis points at their monthly monetary policy meeting in Seoul yesterday. In doing so, governor Park Seung and his six fellow policymakers raised the overnight call rate to 4%.

BoJ - inflation to accelerate in Q1

The Bank of Japan's (BoJ) nine-member board ended Thursday's monetary policy meeting by keeping policy unchanged. BoJ governor, Toshihiko Fukui, said he expected inflation to accelerate in first quarter of 2006.

BoE leaves rates unchanged

The Bank of England left interest rates unchanged at 4.5% following its two-day monetary policy meeting. The bank's Monetary Policy Committee (MPC) last cut rates in August 2005, when policy rates were reduced by 0.25%.

Comment: BoJ and inflation targeting

As the Bank of Japan's "quantitative easing" policy nears its end, the question of whether the central bank may soon set an explicit inflation target is being hotly debated. Although the BoJ is still resisting the adopting the framework, the tide may…

Australian rates unchanged

The Reserve Bank of Australia yesterday left the overnight cash rate at 5.5%, following its first interest rate meeting of the year. Australia is in the midst of its most stable economic period in three decades, with only one change in monetary policy in…

Research on inflation targetting

In this theoretical paper Felipe F. Schwartzman of Princeton University looks at how inflation-targeting central banks using target bands, as opposed to point targets, can go about addressing both inflation and stability biases.

Comment: Bernanke gets more time

The new Fed chairman, Ben Bernanke, will have an extra day to listen to different opinions and pore over the latest data on the American economy at his first FOMC meeting. Yesterday's news that the March 28 meeting will be expanded could increase…

Indonesian rates on hold

The Central Bank of Indonesia yesterday left interest rates unchanged at 12.75% for a second month, as economic growth slowed down. Six interest rate increases since July have helped the rupiah recover from a four-year low on August 30 last year amid…

RBI third quarter review

On January 24 Reserve Bank of India governor, Dr Y Venugopal Reddy, presented the central bank's third quarter review of annual monetary policy for the year 2005-06.

SARB's Mboweni highlights inflation risks

The South African Reserve Bank last week left the repurchase rate unchanged at 7%, but governor, Tito Mboweni, cautioning that robust domestic demand together with oil and food prices posed potential risks to the inflation outlook.

More hikes ahead - Sweden's Ingves

New Swedish central bank governor, Stefan Ingves, said on Monday 6 February that he expected a continued gradual increase in interest rates. The speech, given at Umea University, was Ingves' first public appearance since his appointment at the start of…

Comment: Trichet's new strategy

Jean-Claude Trichet, president of the European Central Bank (ECB), on Thursday 2 February cemented expectations of a 25 basis point rate hike next month. The manner in which he has gone about flagging the move underlines the central bank's new…

Fed raises rates, drops 'measured' stance

The Federal Open Market Committee decided on Tuesday to raise its target for the federal funds rate by 25 basis points to 4-1/2 percent. In its statement the FOMC dropped "is likely" and replaced it with "may," regarding further policy firming.

Comment: Bernanke's options kept open

Subtle changes in the wording of the Fed's latest monetary policy statement leaves new chairman, Ben Bernanke, with more wiggle-room than may have been expected. Markets will become very sensitive to incoming data and will look to Bernanke's Capitol Hill…

Norway's Bergo on monetary policy

In the speech 'Projections, uncertainty and choice of interest rate assumption in monetary policy' given on 27 January Jarle Bergo of Norges Bank said assessing uncertainty is an important part of the central bank's communication strategy.

BoE's Nickell on monetary policy

In the speech 'Monetary policy, demand and inflation' given on 31 January Stephen Nickell of the Bank of England set out his reasons for wanting an interest rate cut this month and last.

Fed will raise rates as Bernanke waits

The pending change in the chairmanship of the Federal Reserve won't stop the FOMC raising US interest rates by a quarter point when they meet on 31 Jan for the 14th consecutive meeting, according to this article published on Tuesday 24 January.

Bank of Canada Monetary Policy Report Update

The Bank of Canada released its January 2006 Monetary Policy Report Update on 26 January. The Canadian and world economies are evolving essentially in line with the Bank's expectations, and the outlook for growth and inflation in Canada is similar to…

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