Monetary Policy
Bank of Japan Monetary Policy Meeting, 21 Nov
At the Bank of Japan's Monetary Policy Meeting held on 21 November, the bank decided, by unanimous vote, to set unchanged guidelines for money market operations for the intermeeting period.
BoJ confirms economy is recovering
In its November monthly report released on Friday 21 November, the Bank of Japan confirmed that the economy is recovering "gradually", according to the Business Times. Although consumption remains weak, the BoJ said "Exports are increasing and capital…
Fed's Guynn says U.S. recovery sustainable
Speaking on Friday 21 November Atlanta Fed President Jack Guynn said that the US is already growing in what appears to be a broad based and sustainable way, according to Reuters. Though consumer spending may ease in the coming months, it is likely to…
PBOC issues coins marking lunar new year
The People's Bank of China began issuing a set of commemorative coins on Friday 21 November, according to a report by Xinhuanet, marking the Chinese year of the Monkey. The set includes six gold and six silver coins.
Czech President Klaus sceptical on the euro
Czech President Vaclav Klaus told the Cato Institute's 21st Monetary conference on Thursday 20 November that he was sceptical about the benefits of the euro as a single currency, reports UPI. He said that much more economic flexibility is needed for…
Canada's Dodge will cut rates if necessary
David Dodge said on Thursday 20 November that interest rates would be cut if the Canadian dollar's rise threatened the economy, according to the Globe and Mail. He said the Bank of Canada would act to stimulate domestic demand to return inflation to the…
ECB's Trichet:: unsound budgets fuel inflation
The ECB President said on Thursday 20 November that "non-disciplined" fiscal policies would undermine confidence and thus reduce potential output and longer-term growth in the eurozone, according to a report by AFP. "The arguments in favour of the…
BoE's Barker- Debt rise wouldn't make hike certain
Kate Barker, a member of the Bank of England's interest rate setting MPC, said in a speech on Thursday 20 November, reported by Reuters, that the fundamental reason for the recent increase in UK interest rates was not curbing consumer debt or house price…
Fed's Kohn on inflation targeting
In a speech to the St Louis Fed Inflation Targeting: Prospects and Problems Conference given on 17 October, Donald Kohn of the Federal Reserve said he believes that those who propose changes from a good system have a high burden of proof. The marginal…
Parry: Role of the Federal Reserve in the economy
In a speech on 'The Role of the Federal Reserve in the Economy' given on 18 November, Robert Parry of the Federal Reserve Bank of San Francisco said it looks as if after a couple of years of sluggish performance the US economy mayhave finally found its…
Study says major cbs target asset price imbalance
A research paper published by the Centre for Economic Policy Research "Monetary Policy Rules, Asset Prices and Exchange Rates" suggests that monetary policy-makers may use asset prices and exchange rates not only as part of their information set for…
Greenspan: Deficits haven't hurt economy
In remarks to a monetary conference sponsored by the Cato Institute on Thursday 19 November, Fed Chairman Alan Greenspan said "creeping protectionism" may interfere with US attempts to reduce its huge trade deficit, according to Associated Press. Without…
Brazil makes unexpected cut to base rate
The central bank of Brazil's Copom monetary policy committee has cut its main interest rate to by 1.5 per cent, according to AFX. The Copom said in a statement that the decision to cut the selic to 17.5 pct, with no bias, was based on its positive…
Fed's Greenspan on the current account deficit
In a speech given on 20 November, Alan Greenspan of the Federal Reserve said should globalization be allowed to proceed and thereby create an ever more flexible international financial system, history suggests that current imbalances will be defused with…
Data to determine when rates will rise-Fed's Poole
St. Louis Federal Reserve Bank President William Poole said on Wednesday 19 November that new economic data would determine when U.S. interest rates eventually rise. He suggested he was comfortable with the current market view of when the federal funds…
BoE's King explains reasons for rate rise
Appearing before the Treasury Select Committee on Thursday 20 November, Mervyn King, governor of the Bank of England gave the reasons for this month's 25 basis point rise in interest rates - the first in nearly four years. A combination of positive…
ECB's Papademos on European monetary policy
In a speech on 'Challenges for monetary policy in Europe' given on 13 November, Lucas Papademos of the ECB quoted from the American writer Joshua J. Marine: "Challenges are what makes life interesting; overcoming them is what makes life meaningful." In…
Richmond Fed's Broaddus: Macroeconomic Principles
In a speech on 'Macroeconomic Principles and Monetary Policy' given on 14 November, J. Alfred Broaddus, Jr. of the Federal Reserve Bank of Richmond said that while carefully monitoring incoming data and the evolution of the near-term outlook for the…
Philadelphia Fed's Santomero on monetary policy
In ae speech on 'Monetary Policy: Stability Through Change' given on 18 November, Anthony Santomero of the Federal Reserve Bank of Philadelphia said the current economic recovery appears to be gaining traction. "I look forward to self-sustaining economic…
Bank of England MPC Minutes 5/6 November 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 19 November for the meeting of 5 and 6 November 2003. The minutes showed the MPC voted 8-1 in favour of raising interest rates to 3.75%. The only dissenter was Marian…
RBA Paper: Asset Price Bubbles and Monetary Policy
Research Discussion Paper from the Reserve Bank of Australia titled "How Should Monetary Policy Respond to Asset-price Bubbles?", November 2003. The paper uses a simple model where optimal monetary policy can be derived by either including or excluding…
Bank of England voted 8-1 for rate hike
Minutes from the Bank of England's last monetary policy meeting released on Wednesday 19 November showed an 8-1 vote in favour of increasing interest rates 0.25%, Reuters reports. Marian Bell, who has been labelled a dove on the MPC was the only member…
Fed's Parry-US economy has room for strong growth
Speaking on Tuesday 18 November, , San Francisco Fed chief Robert Parry said US interest rates could remain at 1 percent for "a while longer" and that there is room for some pretty strong growth before inflationary pressures become a concern.
Greenspan, Snow seek Mutual Fund reforms
Federal Reserve Chairman Alan Greenspan and U.S. Treasury Secretary John Snow on Tuesday 18 November,in letters to the heads of the Senate and House committees overseeing the financial services industry who are holding hearings into the industry this…