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Monetary Policy

Norway's Bergo on monetary policy

In the speech 'Monetary policy and the cyclical situation' given on 23 November Jarle Bergo of Norges Bank said developments ahead are uncertain and the Norwegian economy may be exposed to shocks.

Comment: Bernanke hits the ground running

While arguing that he will take his time in building the case for an inflation-targetting Fed, Ben Bernanke's remarks during his confirmation hearing yesterday before the US Senate Banking Committee made clear that he remains a proponent of the framework.

SARB's Mboweni on the rand

Governor Tito Mboweni yesterday said the South African Reserve Bank (SARB) favoured a "competitive" exchange rate. The country's mining and manufacturing sectors have struggled to adapt to an appreciating rand, since the currency rallied from historical…

BoE interest rate challenge gets under way

The sixth annual Bank of England (BoE)/Times Target Two Point Zero Interest Rate Challenge commences on 21 November. The competition asks nearly one thousand school and college students to decide what the UK's official interest rate should be to keep…

Japan's Fukui on New Path of Growth

On 11 November Toshihiko Fukui, governor of the Bank of Japan, gave a speech entitled "Toward a New Path of Growth for the Japanese Economy" based on the Bank's October Outlook Report at the Kisaragi-kai meeting in Tokyo.

Inflation concerns for Czech NB

The Czech National Bank (CNB) is worried about the inflation criterion the country must meet before joining the euro, vice-governor Miroslav Singer told delegates at a forum of the Czech Exporters' Association on 10 November.

Comment: Unresolved collateral issues remain

The news that the ECB will only accept sovereign debt with an A- rating or higher as collateral for repurchase agreements and other collateral financing trades with commercial banks will help to instil fiscal discipline on member countries in the long…

BoE: no rates change

The Bank of England left its main interest rate yesterday, 9 November, unchanged at 4.5% for the third month in succession. The decision was widely expected after recent comments by Mervyn King, governor of the Bank, indicating he was against rate cuts.

Comment: Activism the ECB way

Yesterday, 9 November, Jean-Claude Trichet explained how the ECB's decision to leave interest rates unchanged for more than two years should not be equated to non-activist monetary policy.

Turkish interest rate cut

The Central Bank of Turkey (CBRT) yesterday, 8 November, cut short-term interest rates by 25 basis points, bringing the overnight borrowing rate and the lending rate to 13.75 percent.

ECB's Weber sees inflation risks

Bundesbank president and ECB governing council member, Axel Weber, told reporters at a news conference on 8 November that risks to price stability have increased in the eurozone in recent weeks, primarily due to a rebound in economic growth, soaring oil…

Comment: The ECB clarifies collateral policy

President Jean-Claude Trichet's clarification yesterday that the ECB would only accept sovereign debt with a rating of A- or higher as collateral for loans to commercial banks, is likely to have policymakers in Italy and Greece and a number of eurozone…

ARB sees "modest" inflation threat

The Australian Reserve Bank said in its monetary policy statement released on Monday 7 November that it expects "a modest" increase in inflation rate and hinted that interest rates would remain on hold this year.

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