Monetary Policy
Unexpected June price rises in Chile
Consumer prices in Chile rose 0.9% in June, representing their biggest monthly rise since September 2005. Food and housing costs were largely responsible for the shock.
Mauritius raises rates to 9.25%
The Bank of Mauritius, the country's central bank, announced on 30 June that it had raised its key repo rate by 75 basis points to 9.25% with effect from 2 July. The decision came after the third meeting of the central bank's Monetary Policy Committee …
Keeping rates low in Japan "could hurt growth"
Two members of the board of the Bank of Japan have dropped strong hints that the central bank is very much in tightening mode, suggesting that a continuation of low interest will hurt the economy.
Another rate hike in prospect in Poland
The Polish finance ministry has forecast that inflation in June will top the central bank's 2.5% target for the first time in over two years, making a rate rise more likely to ease growing price pressures in the fast-growing economy.
Korea's CPI rises 2.5% in a year
South Korea's consumer price index (CPI) rose to within the central bank's inflation target in June, according to preliminary figures from the country's National Statistical Office.
Examining inflation target uncertainty
In this Bank of Japan Working Paper, the authors analyse the interaction between private agents' uncertainty about inflation target and the central bank's data uncertainty.
Mboweni on the commodity boom
Although higher commodity prices have a positive affect on the economy, they create various problems and challenges for economic management, explained Tito Mboweni, governor of South Africa's central bank.
Fed keeps rates at 5.25% for 12th month
The Federal Reserve held interest rates steady 28 June, citing "modest" improvements in recent inflation readings. Fed rates have now remained at 5.25% for 12 months.
Unexpected rate hike in Poland
Poland's central bank surprised market with a second rate hike for this year on 28 June, citing concerns that wage growth will force companies to boost prices.
Bank of England MPC members explain decisions
The testimonies of individual members of the Bank of England's rate-setting monetary policy committee (MPC) before the Treasury select committees on 28 June, provided some clues as to the timing of further tightening.
Czech rates on hold, hikes to follow
The Czech central bank voted 4-1 to keep interest rates on hold at 2.75% on 28 June during its monthly policy meeting. Central bank chief Zdenek Tuma said there was every reason to increase borrowing costs, but that it had not been vital that the central…
Albanian rates up by 0.25%
Albania's central bank raised interest rates by 25 basis points to 5.75% on 28 June. The central bank's governor, Adrian Fullani, said the risk of inflation had grown stronger lately, prompting the central bank's board of directors to act.
Norges Bank raises benchmark rate
In a widely predicted move, Norway's central bank raised its benchmark interest rate for the eleventh time in two years, moving the deposit rate up by a quarter point to 4.5%.
Brazil extends inflation target of 4.5% to 2009
The National Monetary Council of Brazil has extended the central bank's annual inflation target of 4.5% to 2009, which it says will provide policymakers with the "flexibility" to deal with unexpected price increases.
Slovakia keeps rates steady
All key interest rates were left unchanged by the board of the National Bank of Slovakia at its regular monthly meeting on 26 June.
Bank of Israel leaves rates unchanged
The governor of the Bank of Israel, Stanley Fischer, announced on 25 June that the monetary rate for July 2007 will remain unchanged at 3.5%.
Bank of Mexico keeps interest rate on hold
The Bank of Mexico, the country's central bank, held its overnight lending rate at 7.25% on 22 June, after a larger than expected fall in consumer prices in May.
Tight monetary policy in Sri Lanka pays off
The Central Bank of Sri Lanka announced on 25 June that rates will remained unchanged at 10.5%. The central bank also published its regular review of monetary policy on 25 June, noting that improvements in the external and monetary sectors of the economy…
"Whitening effect" changes Hungary's thinking
In a surprise move the National Bank of Hungary cut its benchmark interest rate on 25 June. Rates remain the highest in the European Union, despite the 25 basis point cut which took them to 7.75%. It was the first rate change in Hungary since October…
Geithner on lessons from the Asian crisis
That crisis countries had fixed but adjustable pegs, was one of the main lessons Tim Geithner, the president of the New York fed, highlighted ned in a recent speech.
Credit mis-pricing in India creates risks
Mis-pricing of credit risks by domestic bankers can both create systemic vulnerability and have implications for small borrowers, the deputy governor of the Reserve Bank of India, Rakesh Mohan, noted yesterday.
Kuwaiti institutions under fire from Parliament
Members of parliament in Kuwait launched a fierce attack on the Central Bank of Kuwait (CBK) and the Kuwait Investment Authority (KIA), saying that some of their officials were deriving personal benefit from their decisions and investments.
Angola can end this year with 10% inflation: cb
The National Bank of Angola, the country's central bank, has stated its confidence that Angola can end this year with an inflation rate of 10%, while acknowledging that structural difficulties in the economy may get in the way of achieving this…
Provinces press Canadian cb not to raise rates
Ontario was in the forefront of pressure from the Canadian provinces on Bank of Canada governor David Dodge not to raise interest rates.