Monetary Policy
Comment: Unresolved collateral issues remain
The news that the ECB will only accept sovereign debt with an A- rating or higher as collateral for repurchase agreements and other collateral financing trades with commercial banks will help to instil fiscal discipline on member countries in the long…
BoE: no rates change
The Bank of England left its main interest rate yesterday, 9 November, unchanged at 4.5% for the third month in succession. The decision was widely expected after recent comments by Mervyn King, governor of the Bank, indicating he was against rate cuts.
Comment: Activism the ECB way
Yesterday, 9 November, Jean-Claude Trichet explained how the ECB's decision to leave interest rates unchanged for more than two years should not be equated to non-activist monetary policy.
Turkish interest rate cut
The Central Bank of Turkey (CBRT) yesterday, 8 November, cut short-term interest rates by 25 basis points, bringing the overnight borrowing rate and the lending rate to 13.75 percent.
ECB's Weber sees inflation risks
Bundesbank president and ECB governing council member, Axel Weber, told reporters at a news conference on 8 November that risks to price stability have increased in the eurozone in recent weeks, primarily due to a rebound in economic growth, soaring oil…
Comment: The ECB clarifies collateral policy
President Jean-Claude Trichet's clarification yesterday that the ECB would only accept sovereign debt with a rating of A- or higher as collateral for loans to commercial banks, is likely to have policymakers in Italy and Greece and a number of eurozone…
ARB sees "modest" inflation threat
The Australian Reserve Bank said in its monetary policy statement released on Monday 7 November that it expects "a modest" increase in inflation rate and hinted that interest rates would remain on hold this year.
Brazilian CB reduces number of meetings
The Central Bank of Brazil will lengthen the period between its interest rate policy meetings to 44 days from the current 30 days.
Euro ministers warn against rate hikes
Finance ministers meeting in Brussels renewed their calls for the European Central Bank to refrain from interest rates hikes.
Jordan's interest rates on the move
The Central Bank of Jordan (CBJ) governor, Umayya Touqan, announced on Sunday 6 November that interest rates on repurchase agreements for a week would be raised by 25 basis points.
SARB publishes Monetary Policy Review
The South African Reserve Bank (SARB) released its bi-annual Monetary Policy Review yesterday. It expects the main inflation rate to stay inside its 3-6 percent target range over the next two years, although the outlook has deteriorated because of high…
Fed may be on road to neutral monetary policy
The Federal Open Market Committee will make the 13th consecutive rate increase at its next meeting on 13 December, as it continues on its way to the so-called neutral level, according to this article published on Wednesday 2 November.
Minutes from the Sveriges Riksbank Meeting, 19 Oct
The Sveriges Riksbank published the minutes from its 19 October Executive Board meeting on 31 October. The slowdown in the Swedish economy at the beginning of the year was temporary and growth in private consumption had started to increase, the minutes…
Fed raises rates, maintains 'measured' pace
The Federal Open Market Committee decided on Tuesday 1 November to raise its target for the federal funds rate by 25 basis points to 4 percent. In its statement the FOMC kept its 'measured' stance for removing policy accommodation and warned that energy…
Norges Bank increases interest rates by 0.25%
Norges Bank's Executive Board decided on Wednesday 2 November to raise the sight deposit rate by 0.25 percentage point to 2.25 per cent with effect from 3 November. Output growth is high and may in isolation suggest a more rapid increase in the interest…
ECB's Issing on money's role in monetary policy
In the speech 'The role of money in the monetary policy strategy of the ECB' given on 28 October Otmar Issing of the ECB said the acceleration in eurozone M3 money supply growth seen over the past year is likely to increase inflation pressures in the…
Sweden's Heikensten: Monetary policy and academics
In the speech 'Monetary policy and the academics' given on 28 October Lars Heikensten of the Sveriges Riksbank said there is no doubt that the problems central bankers face and the practical experiences they gain also have been, and still are, an…
Comment: Japan sees return to normal
Japan's monetary policymakers yesterday delivered another instalment of what is becoming an increasingly confident message: after seven years of deflation, they expect prices to start rising again early next year.
RBNZ increases OCR to 7 per cent
The Reserve Bank of New Zealand increased the Official Cash Rate (OCR) by 25 basis points to 7.00 per cent on Thursday. RBNZ governor Alan Bollard said medium term inflation risks remain strong.
Bank of Canada Monetary Policy Report, Oct 2005
The Bank of Canada released its October 2005 Monetary Policy Report on 20 October. The latest report says the global and Canadian economies have continued to grow at a solid pace, and the Canadian economy now appears to be operating at full production…
Lambert on challenging times for monetary policy
In the speech 'Challenging times for monetary policy' given on 19 October Richard Lambert of the Bank of England said the central bank is "determined" to prevent higher oil prices from fanning inflation, suggesting he's unlikely to favor another interest…
Monetary policy predictability in the euro area
This Norges Bank Working Paper evaluates the ability of market participants to anticipate monetary policy decisions in the euro area and in 13 other countries.
Bank of England's MPC voted 9-0 to hold rates
Minutes from the Bank of England's 5 and 6 October meeting, released 19 October, showed that all nine members of the Monetary Policy Committee voted to keep interest rates at 4.5 percent this month, not even discussing arguments for a cut.
Fed's Santomero on the evolving role of the FOMC
In the speech 'The evolving role of the FOMC: An insider's perspective on monetary policy' given on 17 October Anthony Santomero of the Federal Reserve Bank of Philadelphia said the transition to a new Federal Reserve chairman will be a smooth one.