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Monetary Policy

Federal Reserve raises rates to 2%

The Federal Open Market Committee decided on Wednesday 10 November to raise its target for the federal funds rate by 25 basis points to 2 per cent. The FOMC said "Output appears to be growing at a moderate pace despite the rise in energy prices, and…

ECB Monthly Bulletin, November 2004

The European Central Bank published its November 2004 Monthly Bulletin on Thursday 11 November, saying in its regular quarterly 'Survey of Professional Forecasters', that the experts had revised downward their growth forecast for 2005 to 2% from 2.1%…

Trichet on the ECB's use of statistics

In a speech on 'The ECB's use of statistics and other information for monetary policy' given on 11 November, Jean-Claude Trichet of the ECB said the ECB has to avoid overreacting to short-term movements in economic data.

ECB's Papademos on the economic outlook

In a speech on 'The economic outlook and the ECB's monetary policy: some key issues' given on 11 November, Lucas Papademos of the ECB said higher oil prices are having a noticeable affect on inflation in the euro zone countries and growth will be hurt if…

Italy suggests joint action to stabilise euro

Domenico Siniscalco, Italy's economy minister, was quoted by several news agencies on Wednesday 10 November as saying of the euro that "a co-ordinated intervention is being talked about again, not a unilateral intervention. That would not help."

Fukui unsure when BoJ can change monetary policy

Governor of the Bank of Japan Toshihiko Fukui said that although the Japanese economy continues to recover, various factors cloud the outlook as to when Japan may emerge from deflation and allow the BoJ to abandon its current ultra-easy monetary policy.

SARB, Monetary Policy Review, Nov 2004

The South African Reserve Bank has published its Monetary Policy Review for November 2004. Inflation has remained within the target range for the past 13 months. This outcome was achieved through responsible monetary and fiscal policies, improved…

Canada's Longworth on stability & predictability

In a speech on 'The Bank of Canada: Striving for Stability, Predictability, and Confidence' given on 8 November, David Longworth of the Bank of Canada said that, in all of its functions, the Bank of Canada strives for stability, predictability, and…

BNB's Quaden on prospects of the European economy

In a speech on 'Prospects and challenges of the European economy' given on 27 October Guy Quaden of the National Bank of Belgium said the challenges are known and the analyses are completed. "So I believe Europe can implement the Lisbon agenda. The…

Bank of England Inflation Report, November 2004

The Bank of England published its November 2004 Inflation Report on 10 November. In the report the Bank cut its forecast for UK economic growth in 2005 to about 2.5 per cent from 3.1 per cent and said that inflation may accelerate less than expected.

No need to change MNB council makeup says ECB

In a statement made on Tuesday 9 November, the ECB commented on planned changes to Hungary's Central Bank Act saying that "the current Monetary Council rules in force are compatible with central bank independence and provide an appropriate framework for…

Kennedy on the Canadian and American economies

In a speech on 'The Canadian and American Economies: Integration, Not Convergence' given on 4 November, Sheryl Kennedy of the Bank of Canada compares aspects of the Canadian and US economies, discussing their similarities and their differences. She…

Cuba's new convertible currency introduced

The Cuban Convertible Peso, CUC, or "chavitos" as they have become known locally came into circulation on Monday 8 November, substituting the widely circulated US dollar, with the central bank saying the move would help the Cuban currency hold its value.

EU backs ECB warning on euro

The European Union's head office on Tuesday 9 November appeared to agree with comments by the European Central Bank president, warning that "excessive volatility" of the euro's exchange rate against the US dollar could damage economic growth in Europe.

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