Monetary Policy
RBNZ Board chair elected
The Reserve Bank of New Zealand's Board of Directors elected Dr Arthur Grimes as its chair on 18 September. The Board also elected Mrs Alison Paterson as the Board's Deputy Chair.
Opening of the euro banknote design exhibition
Introductory statement by Prof. Eugenio Domingo Solans of the ECB at the Press Conference for the opening of the euro banknote design exhibition on 17 September. Today, more than a year and a half after the introduction of the euro banknotes and coins,…
Norges Bank's rate cut
Norges Bank said at a press conference on 17 September that underlying consumer price inflation is low, with a year-on-year rise in the CPI-ATE of 0.9 per cent in August. The rise in prices for imported consumer goods is pushing down inflation, the press…
Bank of Japan's Monetary Policy Meeting Minutes
Minutes of the Bank of Japan's Monetary Policy Meeting on 7 and 8 August 2003, released 18 September. On the outlook for Japan's economy, members agreed that the standard scenario remained valid: the uptrend in exports and production would resume…
Jordan central bank chief rebuked for bank freeze
Members of Jordan's parliament have signed a petition urging Prime Minister Ali Abulragheb to sack the governor of the central bank of Jordan, Umayya Touqan., according to IRIB News.The move came after Touqan froze all bank accounts belonging to six…
Bank of Finland rejects plan to lower capital base
Plans by the second Minister of Finance Ulla-Maj Wideroos to reduce the size of the Bank of Finland's capital base to 100 million euros in future have been criticised by central bank Governor Matti Vanhala, who said it would weaken the Bank's balance…
ECB's Welteke urges caution in changing yuan peg
Ernst Welteke urged caution on Wednesday 17 September in making "abrupt changes" to currency arrangements such as the Chinese yuan's peg to the US dollar, acording tp Channel News Asia. The ECB Governing Council member said "adaptations should develop in…
EU lacks imagination: Bank of Finland
The Bank of Finland has blamed a lack of confidence and imagination in the economic polices by single currency countries for the weak growth in the euro zone, reports AFP.
Ruling due on RBA credit card reforms
After a six-week hearing and nearly two and a half months of deliberations, Justice Brian Tamberlin is expected to hand down his decision on Friday afternoon on the legality of the Reserve Bank of Australia's credit card industry overhaul, reports The…
ECB officials split on pace of recovery
ECB officials remain divided over the pace and strength of the economic recovery, says the Financial Times. Eugenio Domingo Solans said the eurozone should start showing signs of recovery soon, but it was possible the upturn had already started. But…
IMF's Rogoff urges EU stability pact reform
IMF chief economist Kenneth Rogoff has said that the EU's stability and growth pact needs to be implemented differently in the future, says AFX Asia. He also said he would not be against the European Central Bank cutting interest rates again now.
Brazil central bank cuts benchmark rate to 20 pct
The Central Bank of Brazil's Copom committee lowered the benchmark Selic rate by 2 per cent to 20 percent on Wednesday 17 September, according to AFX Europe. The central bank said the decision was unanimous.
King signals Basel accord delay
Mervyn King, governor of the Bank of England, on Thursday told the UK Treasury Select Committee that the introduction of the new Basel capital accord "may take more time than had originally been hoped". He said that the Basel committee was a "long way…
King posits new Stability and Growth Pact
Bank of England governor Mervyn King showed himself to be at odds with his ECB counterparts by suggesting to the UK Treasury Select Committee on Thursday that Europe's current rules to keep member states' fiscal policies in check are not sustainable.
IMF World Economic Outlook, September 2003
The International Monetary Fund published its twice yearly World Economic Outlook report for September 2003 on 18 September. The report says the global economy is showing signs of improvement, but the pace and strength of the recovery remain uncertain…
IMF predicts better economic growth next year
In its World Economic Outlook, the IMF says that there is reason for optimism the world's economy is returning to normal growth, or perhaps even better, according to Reuters. Factors included a quick end to the Iraq war, the economic stimulus of…
RBA's Stevens on Economic Conditions and Prospects
In a speech on 'Economic Conditions and Prospects' given on 17 September, Glenn Stevens of the Reserve Bank of Australia said thatthe world economy is still not entirely in the clear, but is better than it was, and a fair bit better than it might have…
FOMC statement on decision to hold rates steady
In its statement following the decision to hold interest rates steady at 1 per cent on 16 September the FOMC said it judged that, on balance, the risk of inflation becoming undesirably low remains the predominant concern for the foreseeable future and…
Bank of England MPC Minutes 3/4 September 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 17 September for the meeting of 3 and 4 September 2003. The minutes showed that the MPC voted 9-0 in favour of holding the repo rate at 3.5%.
Bank of Japan Monthly Report, September 2003
The Bank of Japan published the English version of its Monthly Report of Recent Economic and Financial Developments, September 2003, on 17 September. "Turning to the economic outlook, with respect to overseas economies, the likelihood is gradually…
BIS Working Paper on currency crises
This paper modifies the Morris-Shin theoretical framework of financial crises by allowing prices to adjust freely to market conditions. It is then shown that all of the appealing characteristics of that setup are preserved even when public information…
Trichet's nomination, ECB President to be approved
The European Parliament will debate the nomination of Jean-Claude Trichet as the next President of the European Central Bank (ECB) on 23 September.
Norway's interest rates lowered again
Norges Bank cut interest rates by 0.5% to 2.5% on Wednesday, according to Aftenposten. Central bank governor Svein Gjedrem said that with an interest rate of 2.50 per cent, Norges Bank's assessment is that the probability that inflation two years ahead…
IMF lowers its growth forecast for euro zone
The IMF cut its growth forecast to 0.5 percent this year from an April forecast of 1.1 per cent, according to a report by Bloomberg. The report also said while the euro's exchange rate has "stabilised", the US fiscal and current account deficits, as well…