Monetary Policy
"Myths surrounding a deflationary spiral"
An article published in the Financial Times argues that although some commentators think that the world economy is about to be devoured by deflation, in fact UK and Eurozone rates are currently at 3 and 1.9 per cent. Jacek Rostowski says that those…
ECB's Duisenberg says inflation receding
Speaking at the International Monetary Conference on Tuesday 3 June, Wim Duisenberg said inflation pressures had fallen back significantly in recent months and the pace of growth in Europe should pick up, according to a Reuters report.
Argentina c bank on track to target '04 inflation
The president of the central bank of Argentina has said the country should be ready to start inflation targeting in 2004, according to Reuters. Alfonso Prat Gay told a conference it would help Argentina to return to being a normal country.
Bulgarian national bank chief to run for 2nd term
Svetoslav Gavriiski said on Tuesday 3 June that he intends to run for a second six-year term as governor of the National Bank of Bulgaria, according to a report from Novinite. Earlier in the day Bulgarian President Georgi Parvanov praised the work of the…
Swiss central bank warns downturn could get worse
The chairman of the Swiss National Bank (SNB) has ruled out a sharp economic upswing in Switzerland in 2003, Swiss Info reports. Continued risks, Jean-Pierre Roth said, cannot be underestimated.
Fed's Greenspan sees signs of recovery
Speaking to the gathering of top central bankers in Berlin on Tuesday 3 June, Fed chairman Alan Greenspan said indications were that a "fairly marked turnaround" was on the way, according to a report by Assoiated Press.
IMF launches programme for West Africa
IMF Deputy Managing Director, Eduardo Aninat launched a programme designed to increase the capacity of African governments to conduct growth orientated, poverty reducing policies, according to a report by All Africa News. The launch was attended by…
Sveriges Riksbank, Financial Stability Report
Sweden's central bank, the Sveriges Riksbank, published its first Financial Stability Report for 2003 on 3 June. Since the last report economic prospects have been revised downwards for Sweden as well as for other countries of economic and financial…
Statement by IMF Mission on Euro Area Policies
In the concluding statement of the IMF Mission on Euro Area Policies released 28 May the IMF saw 'considerable scope for monetary easing' but recognised that monetary policy could only play a 'supportive' role in the resumption of Eurozone growth. The…
EU to lighten up on monetary policy requirements
Market watchers have suggested that the proposed narrow exchange rate band of 2.25% for ERM2 countries may be softened for Poland and other countries who fear it would be difficult to conduct fiscal policy under those conditions, according to a report in…
Bank Indonesia gov will monitor capital inflows
The recently appointed governor of Indonesia's central bank said that the bank will aim to maintain stability of the rupiah and will monitor capital inflows, according to Dow Jones.
ECB's Issing 'Deflation possible in Germany'
The ECB's chief economist Otmar Issing told Berliner Zeitung that the possibility of deflation in Germany cannot be excluded.
Slovak central bank revises upwards growth in 2003
The National Bank of Slovakia said in its monetary report on Tuesday 3 June that it expects higher growth than originally predicted at 4.4 percent for 2003, according to the TASR website.
Turkish exporters blame c bank for FX drop
After criticism from the prime minister, the central bank of Turkey has received more stick, according to NTV television, this time from disgruntled exporters who blame the central bank for the drop in the US dollar.
Argentina begins banking reform moves
An IMF mission was due to arrive in Argentina on Tuesday 3 June as Congress start discussion on the financial reform bill. The most important aspect of the bill, according to a report in the Financial Times, is that it grants central bank directors…
Fed's Bernanke on monetary policy in Japan
In a speech on 'Some Thoughts on Monetary Policy in Japan' Ben Bernanke of the Federal Reserve said the US economy does not face an immediate threat of deflation but slowing inflation means the major world economies must remain on guard. On the Japanese…
BIS Quarterly Review, June 2003
In its June quarterly review, the BIS said that investors had become fed up with low returns on government bonds and moved to higher yielding corporate or emerging market debt, particularly in countries like Brazil and Turkey.
Senior appointment made at the RBA
The Reserve Bank of Australia announced the appointment of Chris Ryan as Head of Domestic Markets Department on 2 June.
SF Fed's Parry on prospects for the US economy
In a speech on 'Prospects for the National and Local Economies: A Monetary Policymaker's View' Robert Parry of the Federal Reserve Bank of San Francisco said we have seen continuing job losses, little strength in business investment, and most of the…
Fed governor sees no deflation threat in US
Federal Reserve governor Ben Bernanke said on Saturday May 31 that the prospects for the US economy were good and expected growth in the second half of this year of between 3.0 and 3.5 percent, rising to four percent in 2004, according to Channel News…
Turkish PM blames central bank over exchange rate
The Turkish prime minister has apparently laid blame for the fall in the countries exchange rate at the door of the central bank, according to NTV Televsion, Turkey. He said that having to cut interest rates made it even more difficult to raise the…
Pakistan pledges to train Afghan bankers
The head of the central bank of Afghanistan Anwar Ahadi arrived in Pakistan on Sunday on a mission to boost economic cooperation between the two countries, according to a report by the Voice of the Islamic Republic of Iran.
Solomons cb wants parliament to discuss economy
Rick Hou, governor of the Solomon Islands central bank, has called on parliament to arrange a meeting to discuss the problems facing the country. He described the country's fiscal situation as drifting into deeper water, according to Solomon Islands…
Eurozone inflation drops to 1.9%
Inflation in the Eurozone fell below the ECB's 2 per cent target for only the second time last month according to Eurostat, the Associated Press reports.