Central Banks
IMF's Rogoff urges EU stability pact reform
IMF chief economist Kenneth Rogoff has said that the EU's stability and growth pact needs to be implemented differently in the future, says AFX Asia. He also said he would not be against the European Central Bank cutting interest rates again now.
Brazil central bank cuts benchmark rate to 20 pct
The Central Bank of Brazil's Copom committee lowered the benchmark Selic rate by 2 per cent to 20 percent on Wednesday 17 September, according to AFX Europe. The central bank said the decision was unanimous.
King signals Basel accord delay
Mervyn King, governor of the Bank of England, on Thursday told the UK Treasury Select Committee that the introduction of the new Basel capital accord "may take more time than had originally been hoped". He said that the Basel committee was a "long way…
King posits new Stability and Growth Pact
Bank of England governor Mervyn King showed himself to be at odds with his ECB counterparts by suggesting to the UK Treasury Select Committee on Thursday that Europe's current rules to keep member states' fiscal policies in check are not sustainable.
IMF World Economic Outlook, September 2003
The International Monetary Fund published its twice yearly World Economic Outlook report for September 2003 on 18 September. The report says the global economy is showing signs of improvement, but the pace and strength of the recovery remain uncertain…
IMF predicts better economic growth next year
In its World Economic Outlook, the IMF says that there is reason for optimism the world's economy is returning to normal growth, or perhaps even better, according to Reuters. Factors included a quick end to the Iraq war, the economic stimulus of…
RBA's Stevens on Economic Conditions and Prospects
In a speech on 'Economic Conditions and Prospects' given on 17 September, Glenn Stevens of the Reserve Bank of Australia said thatthe world economy is still not entirely in the clear, but is better than it was, and a fair bit better than it might have…
FOMC statement on decision to hold rates steady
In its statement following the decision to hold interest rates steady at 1 per cent on 16 September the FOMC said it judged that, on balance, the risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future and…
Bank of England MPC Minutes 3/4 September 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 17 September for the meeting of 3 and 4 September 2003. The minutes showed that the MPC voted 9-0 in favour of holding the repo rate at 3.5%.
Bank of Japan Monthly Report, September 2003
The Bank of Japan published the English version of its Monthly Report of Recent Economic and Financial Developments, September 2003, on 17 September. "Turning to the economic outlook, with respect to overseas economies, the likelihood is gradually…
BIS Working Paper on currency crises
This paper modifies the Morris-Shin theoretical framework of financial crises by allowing prices to adjust freely to market conditions. It is then shown that all of the appealing characteristics of that setup are preserved even when public information…
Trichet's nomination, ECB President to be approved
The European Parliament will debate the nomination of Jean-Claude Trichet as the next President of the European Central Bank (ECB) on 23 September.
Norway's interest rates lowered again
Norges Bank cut interest rates by 0.5% to 2.5% on Wednesday, according to Aftenposten. Central bank governor Svein Gjedrem said that with an interest rate of 2.50 per cent, Norges Bank's assessment is that the probability that inflation two years ahead…
IMF lowers its growth forecast for euro zone
The IMF cut its growth forecast to 0.5 percent this year from an April forecast of 1.1 per cent, according to a report by Bloomberg. The report also said while the euro's exchange rate has "stabilised", the US fiscal and current account deficits, as well…
Fed leaves key interest rate at 1 percent
The Federal Reserve signalled on Tuesday 16 September that interest rates would be kept low for a "considerable period", according to Associated Press. The Fed's assurances in August and this month that it will keep rates low for a considerable period…
RBA signals no more interest rate cuts
Reserve Bank of Australia deputy governor Glenn Stevens said on Wednesday 17 September "Although in early June a case to ease looked like it was building, it had not strengthened sufficiently by the time of the July meeting to warrant action", reports…
MPC minutes point to UK interest rates rise
Bank of England minutes released September 17 show that for a majority on the MPC, it was a "clear-cut" decision to leave rates unchanged in September. The decision to hold the Bank's main interest rate at 3.5 per cent was decisive, but for some members…
Zimbabwe tries to tame cash crisis with new money
The Reserve Bank of Zimbabwe intends to introduce "bearer cheques" next week in an attempt to alleviate the desperate shortage of cash in the country, Sapa AFP reports. The cheques were printed on banknote paper, looked like banknotes and were as "good…
Gold sales not on official IMF agenda-Welteke
Ernst Welteke said on Wednesday 17 September that renewal of the Washington Accord on gold sales would not be on the agenda at the Dubai IMF meeting scheduled for this weekend, according to Reuters. Welteke did repeat his regularly stated position,…
Norges Bank statement on interest rate cut
Statement from Norges Bank, the central bank of Norway, on its decision to reduce the sight deposit rate, by 0.5 percentage point to 2.50 per cent, with effect from 18 September.
Non, je ne regrette rien
It may be the eve of Wim Duisenberg's departure from the ECB, but if anyone was hoping for a token show of contrition from the stern Dutchman for his occasional indiscretions, they will have been sorely disappointed.
Sweden spurns the euro
Europe's unifiers have been profoundly shaken by Sweden's unambiguous decision to steer well clear of the euro for the time being. Both the Riksbank and the ECB have since publicly been at pains to clarify that the result of the referendum will have no…
Ill wind blows at Riksbank
On a rather breezier note, in August the Riksbank paid out over $100,000 in compensation to a disgruntled employee. 44-year-old computer technician Goran Andervass had fallen out with one of his colleagues after being "provoked by a disgusting fart - a…
What's goin' on?
Bank of England MPC member Stephen Nickell has just accomplished the rather unenviable task of explaining what the switch from an inflation target based on the RPIX index to the HICP index, as used in Europe, actually means. Inflation indexes: who cares?…