Monetary Policy

Goodhart: George should control inflation forecast

The governor of the Bank of England should take full control of the Inflation Report - the central bank's flagship economic forecast - to avoid confusion arising from the disparate input from the nine members of the Monetary Policy Committee, London…

US Federal Reserve cuts interests by 0.5%

The US central bank, the Federal Reserve, has cut interest rates by 0.5% to 5.5%. This is the second rate cut during January 2001, as Fed chairman Alan Greenspan seeks to stop the slowing US economy plunging into recession. The Fed took the markets by…

NY Fed extends triparty collateral for repos

The Federal Reserve on Jan. 31, 2001, extended for another year the use of agency debt and mortgage-backed securities as collateral, along with U.S. Treasuries, for repurchase agreements in daily open market operations. The Fed's policy-setting arm…

Bank of Mexico confirms 6.5% 2001 inflation target

The Bank of Mexico said on Jan. 31, 2001, it has now fully adopted an inflation-targeting regime and abandoned its previous system of managing monetary aggregates. However, the central bank will continue to use the money market "short" as its main policy…

BoJ deputy gov defends ending of 0% interest rate

The Bank of Japan was not wrong in ending its zero interest rate policy last August, Sakuya Fujiwara, a central bank deputy governor, said on Jan. 31. "Look at the market and economic indicators in the month following the removal of the zero rate,"…

Current role of national central banks in the ESCB

This paper by Eduard Hochreiter describes in some detail the tasks currently performed by the national central banks of the Eurosystem, using the Oesterreichische Nationalbank as an example. it does so against the background of the regime shift to the…

Fed meets, seen cutting rates sharply Jan. 31

The U.S. Federal Reserve began a two-day meeting on Jan. 30 amid widespread conviction it will cut interest rates by another half a percentage point to pump life into the world's largest economy.While the meeting started at 9 a.m. (1400 GMT) Jan. 30, an…

BOK head Chon hints at rate cuts in Feb. 2001

Chon Chol-whan, governor of the Bank of Korea (BOK), hinted on Jan. 29 that the central bank may slash the interest rate next month in a bid to bring the sliding economy to a halt. But, at the same time, he warned of "worrisome" high inflation for 2001,…

IMF OKs Colombia's 2001 economic program- fin min

The International Monetary Fund has approved Colombia's 2001 economic program, including a higher budget deficit goal of 2.8% of the gross domestic product, Finance Minister Juan Manuel Santos said Jan. 30, 2001. "The agreement basically consists of a…

Bush says will no longer comment on Fed

President George W. Bush said on Jan. 30, 2001, he had learned his lesson and will no longer comment on actions on short-term U.S. interest rates taken by the Federal Reserve. With the powerful central bank expected this week to cut borrowing costs by a…

Nigeria cbank explains MRR rise to 14.5%

The perceived excess liquidity in the financial system, which seems to defy all solutions, has been fingered as the reason why the Minimum Rediscount Rate (MRR) was raised from 14 to 14.5 per cent last week, according to reports from the African News…

Turkey 2001 FDI 'at least' $4bn - ctrl bk governor

Foreign direct investments into Turkey this year will total "at least $4 billion," Turkish central bank governor Gazi Ercel said Jan. 29. This "very high" level of funds will come from the sale of assets including mobile phone licenses by mid-February…

Swedish cbank signals steady rates as growth slows

Euro-outsider Sweden's central bank signalled on Jan. 29, 2001, its key repo rate would remain on hold at 4.00 percent, 75 basis points below the euro zone's steering rate, at this week's monetary policy meeting. Riksbank Governor Urban Backstrom said in…

Bank of Israel cuts Feb discount rate 30bp to 7.7%

The Bank of Israel said on Jan. 29, 2001, it would lower its discount rate for February by 30 basis points to 7.7% from 8%, saying inflation would be between 1% and 2.5% in 2001. The move is at the top end of forecasts for a cut of between 20 and 30…

Slovak c.bank says no room now for rate cuts

The Slovak central bank (NBS) said its board had left interest rates unchanged at a monetary policy meeting on Jan. 29, 2001, and that potential risks to consumer price growth left no room for rate cuts at present. The bank board said it did not see…

IMF to start exploratory talks with Romanian govt

The IMF will visit Bucharest in early February to discuss with the newly elected Romanian Prime Minister Adrian Nastase how he plans to reduce inflation, restructure state-owned industries and create a healthier financial-banking system, the daily…

Thai central bank cuts 2001 growth forecast

Thailand's central bank cut its forecast for 2001 gross domestic product (GDP) growth on Jan. 29, 2001, to 3-4.5 percent from a previous projection of 4-5.5 percent, blaming a U.S. economic slowdown and a faltering domestic recovery. "The evident…

BOJ Hayami-economy moderately recovering

Bank of Japan Governor Masaru Hayami reiterated Jan. 29 that while the economy is gradually recovering, the pace of growth is slowing due to a fall off in exports. "The economy continues to moderately recover, but the tempo is easing due to a…

Taiwan will adopt loose monetary policy

Taiwan central bank governor Perng Fai-nan said on Jan. 29, 2001, the bank would adopt an "appropriately loose" monetary policy, and would consider following suit if the U.S. cuts rates at the end of the month. The central bank would also fully supply…

Bank of Canada forecasts 3 percent growth

The Bank of Canada estimates the Canadian economy will expand by 3 percent in 2001 after growing at a rate of 5 percent in 2000, Deputy Governor Sheryl Kennedy said on Jan. 29, 2001. "The Canadian economy has been performing well in recent years and we…

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