Monetary Policy
Word junkies get ready for a fix from the Fed
According to this article published on Monday 12 December, while there is little doubt the Fed will raise the funds rate by another 25 basis points to 4.25 percent on Tuesday, the main issue is the language of the statement.
Fed may remove 'accommodation' phrase
The Federal Reserve may say monetary policy is no longer stimulating the economy after it is expected to raise interest rates Tuesday 13 December for the 13th time, according to over half of Wall Street's largest bond trading firms surveyed by Bloomberg.
RBNZ Monetary Policy Statement, December 2005
The Reserve Bank of New Zealand published its December 2005 Monetary Policy Statement on 8 December. It also announced that the OCR will increase by 25 basis points to 7.25 per cent. The report said the RBNZ remains concerned about the tightness of…
Bank of Canada raises interest rates
The Bank of Canada announced on Tuesday 6 December that it is raising its target for the overnight rate by one-quarter of one percentage point to 3 1/4 per cent. In a press release the bank suggested rates would rise further saying, "some further…
Turkey to begin inflation targeting
Turkey plans to adopt formal inflation targeting in 2006, according to central bank governor Sureyya Serdengecti.
Comment: Turkey to target
Governor Sureyya Serdengecti's announcement on Monday 5 December that the Central Bank of Turkey will adopt formal inflation targets from January 2006 marks another step along the road of monetary policy reform that has seen Turkey shrug off its volatile…
How should central banks communicate?
This European Central Bank Working Paper published on 25 November shows that central bank communication is a key determinant of the market's ability to anticipate monetary policy decisions and the future path of interest rates.
Sweden's Persson - speech on monetary policy
In the speech 'Monetary policy yesterday, today and tomorrow' given on 9 November Kristina Persson of the Sveriges Riksbank said the economic outlook in Sweden is favourable, but that she finds the international picture and its effects on Sweden worrying.
ECB's Issing on mortgage markets & monetary policy
In the speech 'Mortgage markets and monetary policy: a central banker's view' given on 23 November Otmar Issing of the ECB said the ECB will be able to avoid sharp rises in interest rates if markets have faith in its ability to keep inflation under…
Norway's Bergo on monetary policy
In the speech 'Monetary policy and the cyclical situation' given on 23 November Jarle Bergo of Norges Bank said developments ahead are uncertain and the Norwegian economy may be exposed to shocks.
Bernanke urges action on China currency
Federal Reserve chairman-designate Ben Bernanke has called on China to reform its currency regime in the interests of its own economy.
Duck-soo urges BoK caution
South Korea's finance minister, Han Duck-soo, said on Tuesday 15 November that the Bank of Korea should be "more cautious" in raising interest rates.
Bernanke hawkish on inflation
In his confirmation hearing before the US Sentate Banking Committee, Ben Bernanke expressed some concerns about the current inflation rate in the US.
Comment: Bernanke hits the ground running
While arguing that he will take his time in building the case for an inflation-targetting Fed, Ben Bernanke's remarks during his confirmation hearing yesterday before the US Senate Banking Committee made clear that he remains a proponent of the framework.
SARB's Mboweni on the rand
Governor Tito Mboweni yesterday said the South African Reserve Bank (SARB) favoured a "competitive" exchange rate. The country's mining and manufacturing sectors have struggled to adapt to an appreciating rand, since the currency rallied from historical…
BoE interest rate challenge gets under way
The sixth annual Bank of England (BoE)/Times Target Two Point Zero Interest Rate Challenge commences on 21 November. The competition asks nearly one thousand school and college students to decide what the UK's official interest rate should be to keep…
Norway paper on Monetary policy and asset prices
A recent Bank of Norway working paper investigates whether there is a case for asset prices in interest rates rules within a small econometric model of the Norwegian economy.
All eyes on the rand
Inflation is on target, but the exchange rate still dominates economic debate, writes Malan Rietveld.
Beware fads and fashions
The latest fashion in accounting standards will not deliver good central banking says John Nugée.
Accountability – a politician’s view
David Ruffley discusses how the Bank of England’s accountability has developed in recent years.
Why statistics matter
More care should be taken in presenting important statistics, says Steve Hanke, editorial adviser to Central Banking.
No rates change, recovery "gradual" - BoK's Park
The Bank of Korea (BoK) on Thursday 10 November left its benchmark short-term interest rate unchanged at 3.5 percent. The decision was widely expected by market participants, following a 25 basis point increase last month.
Japan's Fukui on New Path of Growth
On 11 November Toshihiko Fukui, governor of the Bank of Japan, gave a speech entitled "Toward a New Path of Growth for the Japanese Economy" based on the Bank's October Outlook Report at the Kisaragi-kai meeting in Tokyo.
Inflation concerns for Czech NB
The Czech National Bank (CNB) is worried about the inflation criterion the country must meet before joining the euro, vice-governor Miroslav Singer told delegates at a forum of the Czech Exporters' Association on 10 November.