Monetary Policy
Bo J Monthly Report downgrades economy view
The Bank of Japan published its Monthly Report of Recent Economic and Financial Developments, May 2003, on 22 May. In the report the BOJ downgraded its view on the economy, citing "greater uncertainty" over the outlook. It said that overall conditions…
New Bank of England Agency Opened in Exeter
Eddie George opened the Bank of England's new regional office in Exeter on Friday 23 May. This is the central base for the Bank's Agency for South West England.
Financial data and monetary policy transparency
The Reserve Bank of Australia published a Research Discussion Paper on 23 May titled "What Do Financial Market Data Tell Us About Monetary Policy Transparency?" by Jonathan Coppel and Ellis Connolly. This paper attempts to discern from financial market…
BOK Governor discounts deflation risk
The Bank of Korea (BOK) governor Park Seung said on Thursday 22 May that there is little possibility of deflation at this point with the current heated real estate market, according to a report in the Korea Times.
Brazil's central bank head of economics resigns
The head of economic policy at Brazil's central bank, Ilan Goldfajn, resigned on Thursday 22 May, according to Associated Press, but denied the decision had anything to do with criticism the bank received at not cutting interest rates earlier in the week.
ECB statements boost rate cut chances
Euro-zone central bankers gave what looked like strong hints on Friday 23 May for an ECB interest rate reduction in June, according to Reuters. The surging value of the euro which went through its launch level on Friday and data showing inflation…
Security fears keep IMF, World Bank out of Iraq
Speaking on Thursday 22 May, officials from the IMF and World Bank said they had not yet sent teams to Iraq as security concerns remain, according to Reuters. Teams are currently based in Jordan but aren't quite ready to move into Iraq, the World Bank…
Dallas Fed official says deflation risk has risen
The top monetary policy advisor to the Dallas Fed president has said he and Robert McTeer agreed that the probability of deflation was "about one in four, or 25 percent", according to a report by Reuters.
Olson says deflation possibility very low
Federal Reserve Governor Mark Olson said on Thursday 22 May thatthe Fed will continue to monitor the deflation situation very carefully "because we've seen the way deflation has hampered Japan's recovery".
Ex-central banker Fraga takes wheel of a cab
Former president of the central bank of Brazil Arminio Fraga has recently appeared on Brazilian television in a comedy sketch playing a taxi driver who likes to voice his opinions on the economy, according to a Bloomberg report
Philippines central bank reviews inflation target
The governor of the Philippines central bank, Rafael Buenaventura, said on Thursday that the inflation target may be revised down as previous concerns such as high oil prices no longer existed, according to Reuters.
Japan on brink of crisis, warns central banker
Speaking to parliament on Wednesday 21 May, Bank of Japan governor Toshihiko Fukui said Japan faces a situation where a so-called financial crisis could be triggered at any time, according to a report by Sapa-AFP.
Bundesbank chief wants tightening stability pact
Bundesbank president Ernst Welteke has warned that Germany should not abandon its budget consolidation efforts and called for a tightening of the European Stability and Growth Pact rules, according to a report in Deutsche Welle.
ECB rates may be too low for Denmark
An OECD study warns that Denmark's policy of shadowing the ECB's interest rates could result in inappropriate rate levels thereby creating a risk the economy will overheat, according to Reuters.
Jenkins on modern central banking in Canada
In a speech om'Modern Central Banking: A Canadian Perspective' Paul Jenkins of the Bank of Canada said there is no doubt that today we have a better understanding of what monetary policy can do and cannot do, who should be responsible for it, and how it…
Fed's Greenspan on the economic outlook
In testimony on 'The economic outlook' Alan Greenspan of the Federal Reserve said the economic information received in recent weeks has not, in his judgment, materially altered the outlook. Nonetheless, the economy continues to be buffeted by strong…
Secrets of a soon to be missed central banker
Speaking on Tuesday 20 May, UK chancellor Gordon Brown spoke in glowing terms of Sir Edward George, the soon to depart governor of the Bank of England. "I will miss Eddie" he said, and went on to reveal a few central banking secrets, including the case…
Britain misses its euro connection
An article in the Financial Times says that it shouldn't be forgotten that the decision over whether Britain joins the euro is a political rather than an economic one. Both Gordon Brown and Tony Blair, the authors argue, are guilty of dressing the…
BCCI defence costing Bank of England £1m a month
The High Court in London heard on Monday 19 May that the Bank of England is spending more than £1m a month to fight allegations that it recklessly mishandled the regulation of BCCI, according to the Financial Times.
Economic analysts dismiss threat of US 'deflation'
At its twice yearly meeting in Washington the Shadow Open Market Committee said deflation fears are unfounded and misguided, according to VOA News.
IMF urge currency flexibility for Kenya's c bank
The IMF has apparently been encouraging the central bank of Kenya to allow the exchange rate to be more flexible than it has been in the past, according to the Daily Nation.
RBNZ unveils schools monetary policy competition
The Reserve Bank of New Zealand on Wednesday May 21 launched its second Monetary Policy Challenge aimed at secondary school economics students. The competition involves teams of students becoming, in effect, central bankers. Participants will need to…
Deutsche Bundesbank Monthly Report, April 2003
The Bundesbank said in its April 2003 monthly report that consumer prices continued to rise in March, albeit at a somewhat slower pace than before. The seasonally adjusted increase went down to 0.2%. The year-on-rate of increase fell to 1.2% from 1.3% in…
Bank of England MPC Minutes 7/8 May 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 21 May for the meeting of 7 and 8 May 2003. The minutes showed that Christopher Allsopp, Kate Barker, Marian Bell and Stephen Nickell voted for a 25 basis point rate cut…