Monetary Policy
U.K. interest rates are heading for a decline
The Bank of England's Monetary Policy Committee will decide on UK interest rates this Thursday. This article published on Wednesday 7 September suggests there will no surprise when the MPC leaves interest rates unchanged at 4.5 per cent, but rates are…
Bank of Canada raises interest rates by 0.25%
The Bank of Canada announced on Wednesday 7 September that it is raising its target for the overnight rate by one-quarter of one percentage point to 2 3/4 per cent.
BSP not ruling out tighter money policy
The Philippines central bank (BSP) said it would not rule out a "possible tightening" of its monetary policy after August inflation figures showed the rate rose faster than expected.
PBOC advisor says maintain neutral monetary policy
Yu Yongding, a senior economist and member of the People's Bank of China's monetary policy committee said China should maintain a neutral monetary policy as any change soon could confuse markets.
Experiences of inflation targeting
A new IMF paper examines the experiences of inflation targeting countries and presents a number of "stylised facts" and conclusions for policy makers.
What remains of the SGP?
Franz-Christoph Zeitler, a member of the executive board of Deutsche Bundesbank, delivered a speech at the Salzburg seminar, a high-profile meeting place of international leaders, at which raised the question "What remains of the Stability and Growth…
Rupiah sinks on oil-price rise
The Indonesian rupiah has sunk to its lowest level since January 2002, following a week of rapid depreciation. Burhanuddin Abdullah, governor of Bank Indonesia, vowed to continue to defend the rupiah.
Kenya committee to advise on monetary operations
The Central Bank of Kenya will benefit from expert advice on how to implement monetary policy, following the establishment of a Monetary Policy Advisory Committee on August 24.
The yuan's stable float
Noises and signals continue to emerge from China about reforms to the exchange rate regime, but the central bank still appears to have a firm grip on the value of the yuan.
Filipino rates unmoved despite inflation threat
The Philippines central bank held interest rates steady at its August monetary policy meeting, despite inflation which is expected to be above-target in 2005 and 2006.
Sweden leaves interest rate unchanged
The Swedish Riksbank kept the repo rate unchanged at 1.5% at its meeting on 23 August. CPI inflation remains low at 0.3% in the year to July, but it is expected to return to the target level of 2% over the next two years.
Nigeria in record forex sale
The Central Bank of Nigeria offered $500 million to banks in the foreign exchange market on 23 August, in its largest ever sale of foreign exchange.
Inflation still below target in Israel
The Bank of Israel's inflation report for the first half of 2005 shows inflation below the lower limit of the target range, despite reductions in interest rates at the beginning of the year.
Comment: The Benefits of Joining the EMU
What is the gain for new European Union member states of joining the Euro currency area so soon? This is the question asked by Federico Ravenna in a recent ECB working paper*. The author argues that the decision to become part of the monetary union is…
Europe's unstable currency union?
John Nugee writes on how a "one size fits all" interest rate policy in the Eurozone can exacerbate divergence between economies.
Hungary continues to cut rates
The National Bank of Hungary cut its key interest rate on 22 August for the seventh time in 2005, from 6.75% to 6.25%. The 50 basis point cut was the latest in a cycle of decreasing rates which began in November 2003, and was larger than markets were…
Pricking a housing bubble, Australian style
Reserve Bank of Australia governor Ian Macfarlane has declared victory in the fight to deflate one of the world's most obvious housing bubbles, according to this article published on Wednesday 17 August. In fact, he is so confident he has succeeded that…
ECB behind BoE, Fed on clarity; must reveal more
This article published on Thursday 18 August reveals the results of a poll of economists and academics who were asked to compare the ECB with the Bank of England, U.S. Federal Reserve and Bank of Japan for clarity of communication.
RBA could hold meetings 'every two months'
The Reserve Bank of Australia could meet every second month, rather than holding the current monthly monetary policy meetings, a former central bank board member said.
Copom holds Selic at 19.75% with no bias
The monetary policy committee of the Brazilian central bank announced Wednesday 17 August after its two-day meeting that, as expected, it is holding Selic (base rate) unchanged at 19.75% annually with no bias.
Comment: Views on King's gambit
Here is a roundup comments on the Bank of England's publication of the minutes of the latest MPC meeting, which revealed that, for the first time in the committee's history, the governor voted with the minority (see yesterday's CentralBankNet).
SNB says rates won't stay low for long
A recovery in the Swiss economy will probably take interest rates higher sooner rather later, according to a central bank board member in a newspaper interview published on Wednesday 17 August.
Comment: Why Foreign Reserve Portfolios Matter
What do recent trends in official reserve management imply for foreign exchange markets and the conduct and coordination of monetary policy across the globe?
Argentina rebuilds
A re-equipped central bank is able to tackle mounting inflationary pressures in Argentina as the economy prospers, explains Martin redrado