Monetary Policy
BoE's Walton sees more confidence in economy
Bank of England Monetary Policy Committee member David Walton was quoted on Friday 12 May as saying that policymakers are confident that the UK economy has clearly emerged from a soft patch early last year.
The little-noticed 'yet' in the Fed's statement
According to this article by John Berry, published Thursday 11 May, it was in the FOMC's statement explaining what may come next that "yet" appeared, signalling that after boosting the target at 16 consecutive meetings the committee probably will take a…
SARB Monetary Policy Review, May 2006
The South African Reserve Bank published its Monetary Policy Review for May 2006 on Thursday 11 May. Forecasts suggest that the inflation outlook has improved significantly, and there is evidence that inflation expectations and wage settlements are…
Fed raises rates to 5%
The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."
Swedish Riksbank's board unanimous on decision
The minutes of the Swedish Riksbank's monetary policy meeting on 27 April showed it was unanimous in its decision to leave the repo rate unchanged at 2%.
Canada's Longworth on economic development
In the speech 'The crucial contribution of the financial system and monetary policy to economic development' given on 5 May David Longworth of the Bank of Canada emphasised that behind the abstract concept of financial system efficiency lies a very…
Fed Reserve Bank of St Louis Review, May/Jun 2006
The latest edition of the St Louis Fed's Review for May/Jun 2006 includes the article 'The learnability criterion and monetary policy'. The paper reviews some recent research that has emphasized methods for analyzing models of learning, in which…
A hands-off central banker?
According to the Working Paper "A hands-off central banker? Marriner S. Eccles and the Federal Reserve Policy, 1934-1951" published April 2006, the Federal Reserve after 1935 acquired new instruments to command monetary policy, but it did not change its…
Wages no bar to Fed pause after move tomorrow
There's no reason for Federal Reserve officials to stop thinking about a pause in raising interest rates after going to 5 percent when they meet tomorrow (Wednesday), according to this article published Tuesday 9 May.
Former Fed economist urges more transparency
There is cautious optimism that Federal Reserve chairman Ben Bernanke will bring real transparency to the US central bank, this article published Monday 8 May says.
Bank of Israel publishes minutes
The Bank of Israel said on Monday 8 May it will publish the minutes of meetings in which interest rates are fixed each month from now on.
Bush sees no credibility problem for Bernanke
US President George Bush said in an interview on Friday 5 May that new Federal Reserve chairman Ben Bernanke did not have a credibility problem.
Comment: Weber reveals his monetary policy stance
Axel Weber set out his thinking on the role of monetary policy and interest rates in three recent speeches. This article explores his views.
Comment: Unravelling the RBA hike
The Reserve Bank of Australia has joined the world's leading central banks in tightening mode. Last week's rate rise was largely unexpected and opinion is split over how far the central bank will go in hiking rates this year.
Issing to leave ECB but monetarism lives on
Otmar Issing's legacy is set to continue, despite his retirement from the European Central Bank at the end of the month, according to this article published Friday 5 May.
Comment: Trichet sounds his warning
After having made it clear that an interest rate increase was highly unlikely, the ECB's monetary policy meeting this week was all about how to signal future rate hikes pencilled in for later this year. Jean-Claude Trichet's message yesterday, 3 May, was…
ECB signals June rate rise
At the ECB's post-meeting press conference, after holding eurozone interest rates unchanged, on Thursday 4 May Jean-Claude Trichet said the Governing Council will exercise strong vigilance in order to ensure that risks to price stability over the medium…
RBA raises interest rates 0.25%
The Reserve Bank of Australia raised interest rates to a 5-year high of 5.75% on Wednesday 3 May. "The Board judged at its May meeting that inflationary risks had increased sufficiently to warrant an increase in the cash rate," RBA governor Ian…
Comment: Global impacts of US monetary policy
A recent ECB working paper finds that emerging markets stock markets returns can be reduced by more than 10% in response to a 100 basis point increase in US monetary policy rates. On average global equity markets fall by 3.8%.
A world out of balance
America’s deficits may not herald disaster says Angel Ubide, but should lead to questioning national monetary policy frameworks.
A few thoughts on the global situation
Policymakers around the world must act to restore order to the global economy says Jacques de Larosière.
Bernanke delivers 'There may come a time' speech
According to this article published on Friday 28 April , Fed chairman Ben Bernanke has given his version of Greenspan's "there may come a time" speech, suggesting the Fed could pause in its campaign to raise rates.
Bank of Canada Monetary Policy Report, Apr 2006
The Bank of Canada released its April 2006 Monetary Policy Report on 27 April. The latest report says the Canadian economy continues to grow at a solid pace, supported by robust global growth, firm commodity prices, and strong domestic demand.
RBNZ leaves OCR unchanged at 7.25 per cent
The Reserve Bank of New Zealand announced on Thursday 27 April that the Official Cash Rate (OCR) will remain at 7.25 per cent.