Monetary Policy
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.
BoE's Lomax on UK monetary policy
In the speech 'UK monetary policy: The international context' given on 17 October Rachel Lomax of the Bank of England said the central bank has to be careful not to dislodge inflation expectations at a time when the outlook for world oil prices remains…
BOJ minutes show support for liquidity cut
Two Bank of Japan Policy Board members suggested that they may support the lowering of the current account balance target in the future, according to minutes released Monday 17 October.
Heikensten on monetary policy in Sweden and US
In the speech 'Monetary policy in Sweden and the United States' given on 14 October Lars Heikensten of the Sveriges Riksbank said he expects continued strong growth globally as well as in Sweden, uncertainty on future oil prices and their effects, and an…
Fed minutes suggest more rate rises
Minutes from the Federal Reserve's 20 September meeting were published on Tuesday 11 October. FOMC members believed more interest-rate increases would be needed to keep inflation down when they raised interest rates at their last meeting, the minutes…
Chicago Fed 's Moskow on monetary policy
In the speech 'Reflections on monetary policy: Flexibility, transparency, and inflation guidelines' given on 26 September Michael Moskow of the Federal Reserve Bank of Chicago said he was wary of setting strict numerical targets for inflation and that a…
Canada's Macklem on the inflation target
In the speech 'The inflation target: More than just a target' given on 6 October Tiff Macklem of the Bank of Canada discusses the Bank of Canada's inflation-targeting system, which aims to keep inflation low, stable, and predictable in order to promote…
Rosenberg on the Riksbank and monetary policy
In the speech 'The Riksbank and monetary policy' given on 29 September Irma Rosenberg of the Sveriges Riksbank said partly on account of the more expansionary economic policy, demand can be expected to be somewhat more robust in the coming two years than…
Canada's Longworth on monetary policy
In the speech 'Monetary policy: One instrument, one target' given on 29 September David Longworth of the Bank of Canada said the Canadian economy will feel only a modest impact from hurricanes Katrina and Rita, but higher oil prices will result in a…
SF Fed's Yellen on US economy and monetary policy
In the speech 'The US economy and monetary policy' given on 27 September Janet Yellen of the Federal Reserve Bank of San Francisco said the Fed must uphold its pledge to keep inflation subdued, suggesting US interest rates would continue to rise.
Fed hikes rates again, but Olson dissents
The FOMC decided on Tuesday 20 September to raise its target for the federal funds rate to 3.75%. In a statement it maintained its 'measured' pace for removing policy accommodation and revealed that Mark Olson had voted to keep rates unchanged.
Bank of England's MPC united on rate vote
Minutes from the Bank of England's 7 and 8 September meeting released on Wednesday 21 September showed policy makers voted unanimously to keep interest rates unchanged.
Nickell on practical issues in UK monetary policy
In the speech 'Practical issues in UK monetary policy, 2000-2005' given on 20 September, Stephen Nickell of the Bank of England said the Bank could not have prevented Britain's house-price boom without harming economic growth.
South Africa plans no change to inflation target
Treasury Director General Lesetja Kganyago has said South Africa has no plans to modify its inflation targeting framework to aim for the middle of the established three to six per cent target range.
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.
Policymaking on the FOMC: Transparency, Continuity
This Economic Letter is adapted from remarks by Janet Yellen, President and CEO of the San Francisco Fed, made on 31 May. Yellen says over the past decade, the FOMC has continually re-assessed the costs and benefits of various steps toward greater…
Fed will raise rates and indicate more to come
According to an article published on Monday 19 September, the Federal Reserve's FOMC committee will increase interest rates on Tuesday, with financial markets gradually accepting that the effect of Hurricane Katrina won't deter them.
BoE's Walton on monetary policy challenges
In the speech 'Monetary policy challenges facing a new MPC member' given on 16 September David Walton of the Bank of England said it has been a very interesting, and challenging, time to join the MPC.
Comment: Divergence and monetary policy
The issue of regional economic divergence continues to attract much attention from policymakers and academics studying the eurozone. The issue is particularly important for the ECB, as it is often mentioned that divergent economic performance across…
BOJ's Iwata repeats inflation target call
Bank of Japan deputy governor Kazumasa Iwata said Thursday 15 September that the central bank should adopt a specific inflation target to boost transparency in monetary policy and fend off excessive market speculation after its quantitative easing…
SNB's Hildebrand says rate hikes may be needed
Swiss National Bank board member Philipp Hildebrand said it may be necessary to increase interest rates further if it becomes clear that a 'sustainable improvement of economic prospects' is occurring.
Report says Fed rate pause 'not ruled out'
Federal Reserve officials say they are watching to see how financial markets and the economy react to the destruction caused by Hurricane Katrina before deciding on what action to take at their policy-setting meeting on Sept. 20, the Wall Street Journal…
BOK will 'seriously' consider rate hike next month
Bank of Korea governor Park Seung said the central bank may raise its benchmark interest rate as early as next month as it needs to act before a full economic recovery.