Monetary Policy
Nigeria in record forex sale
The Central Bank of Nigeria offered $500 million to banks in the foreign exchange market on 23 August, in its largest ever sale of foreign exchange.
Inflation still below target in Israel
The Bank of Israel's inflation report for the first half of 2005 shows inflation below the lower limit of the target range, despite reductions in interest rates at the beginning of the year.
Comment: The Benefits of Joining the EMU
What is the gain for new European Union member states of joining the Euro currency area so soon? This is the question asked by Federico Ravenna in a recent ECB working paper*. The author argues that the decision to become part of the monetary union is…
Europe's unstable currency union?
John Nugee writes on how a "one size fits all" interest rate policy in the Eurozone can exacerbate divergence between economies.
Hungary continues to cut rates
The National Bank of Hungary cut its key interest rate on 22 August for the seventh time in 2005, from 6.75% to 6.25%. The 50 basis point cut was the latest in a cycle of decreasing rates which began in November 2003, and was larger than markets were…
Pricking a housing bubble, Australian style
Reserve Bank of Australia governor Ian Macfarlane has declared victory in the fight to deflate one of the world's most obvious housing bubbles, according to this article published on Wednesday 17 August. In fact, he is so confident he has succeeded that…
ECB behind BoE, Fed on clarity; must reveal more
This article published on Thursday 18 August reveals the results of a poll of economists and academics who were asked to compare the ECB with the Bank of England, U.S. Federal Reserve and Bank of Japan for clarity of communication.
RBA could hold meetings 'every two months'
The Reserve Bank of Australia could meet every second month, rather than holding the current monthly monetary policy meetings, a former central bank board member said.
Copom holds Selic at 19.75% with no bias
The monetary policy committee of the Brazilian central bank announced Wednesday 17 August after its two-day meeting that, as expected, it is holding Selic (base rate) unchanged at 19.75% annually with no bias.
Comment: Views on King's gambit
Here is a roundup comments on the Bank of England's publication of the minutes of the latest MPC meeting, which revealed that, for the first time in the committee's history, the governor voted with the minority (see yesterday's CentralBankNet).
SNB says rates won't stay low for long
A recovery in the Swiss economy will probably take interest rates higher sooner rather later, according to a central bank board member in a newspaper interview published on Wednesday 17 August.
Comment: Why Foreign Reserve Portfolios Matter
What do recent trends in official reserve management imply for foreign exchange markets and the conduct and coordination of monetary policy across the globe?
Argentina rebuilds
A re-equipped central bank is able to tackle mounting inflationary pressures in Argentina as the economy prospers, explains Martin redrado
Interview: Kenneth Clarke
In this interview Kenneth Clarke, Britain’s chancellor of the exchequer from 1993 to 1997, calls on the ECB to rethink its role and communications.
Review of Monetary policy Transmission in the Euro Area
The ECB is piecing together how monetary policy affects the eurozone economy. A review by Paul Brione of Central Banking.
One size fits none
As the German economy stalls, should the ECB shift its policy focus from the eurozone as a whole? By Henrik Enderlein.
Kansas Fed Paper on inflation targeters
The Kansas Fed Working Paper "Do we really know how inflation targeters set interest rates?" published July 2005 says under inflation targeting regimes other objectives that possibly conflict with the inflation goal are present.
A punch bowl made in China
China is supplying a punch bowl to keep the party going despite the Federal Reserve's best efforts, according to an article published on Wednesday 10 August. So consumers can thank Beijing and other Asian central banks for all the cheap credit, it says.
Bank of Mexico holds interest rates steady
Mexico's central bank held monetary policy steady on Friday 12 August saying after its twice-monthly policy meeting it was keeping its money market "short" steady at 79 million pesos a day.
German finance minister calls for ECB rate cut
German Finance Minister Wolfgang Clement called on the European Central Bank to cut interest rates, saying it was "remarkably" more reserved than other central banks.
Norway keeps interest rates unchanged at 2%
Norway's central bank held its key deposit rate steady at 2.0 percent on Thursday 11 August as was widely expected.
Fed raises rates, maintains measured stance
The Federal Open Market Committee decided on Tuesday 9 August to raise its target for the federal funds rate by 25 basis points to 3-1/2 percent. The FOMC maintained its measured stance on monetary policy accommodation.
IMF letter on prospects for ECB rate cut
In a letter published by the Financial Times on Tuesday 9 August, Michael Deppler of the IMF said international developments suggest that the worst may be over on growth in the eurozone but point to further upward pressure on headline inflation because…
COMMENT BY CENTRALBANKNET
The fear that demand in many leading economies has been sustained only by a housing and real estate "bubble" is often seen as one of the biggest risks facing monetary policymakers.