Monetary Policy
Cyprus cbank leaves base rate unchanged at 7.0 pct
Cyprus's central bank left its key interest rate steady at 7.0 percent at a board meeting on Jan. 26 as expected, a senior manager said. "The board of the central bank decided to adopt the recommendation of the monetary advisory committee to leave the…
Czech house wants cbank aim cut from constitution
The lower house of the Czech parliament agreed on Jan. 26, 2001, to cut the central bank's policy aim out of the constitution, a part of a wider revamp of central bank laws by the country's two main parties.But the constitutional amendment is expected to…
Brash -Svensson report due 'within next few weeks'
A New Zealand government-appointed independent review into the country's monetary policy making will publish its findings within a few weeks, Reserve Bank Governor Don Brash said on Jan. 26, 2001.The one-man review is being conducted by Lars Svensson,…
Greenspan surprises with support for tax cuts
Federal Reserve Board Chairman Alan Greenspan delivered some surprising support for President George W. Bush's call for a $1.6 trillion tax cut, saying tax cuts will benefit the economy in the long run."In today's context, where tax reduction appears…
Portugal cbank warns govt on wages, inflation
Portugal's central bank on Jan. 25 delivered a slap on the wrist to the Socialistgovernment for raising state sector wages too much, saying itposed a risk to inflation. "The main risk to inflation forecasts comes from salariesand it would be extremely…
Czech cbank cuts inflation fcast, leaves rates
The Czech central bank board, in the face of weaker price pressures, discussed the possibility of a rate cut at its regular weekly board meeting on Jan. 25 but left rates unchanged, vice-Governor Ludek Niedermayer said. Monetary department chief Ales…
Israel's Barak backs cautious monetary policy
Prime Minister Ehud Barak said on Jan. 25 he supports the Bank of Israel's cautious interest rate policy despite calls from the business sector for sharper rate cuts. "I think this (Alan) Greenspan type of cautious, carefully weighed policy of the Bank…
Ukraine c.bank desperately seeking t-bill buyers
Ukraine's central bank said on Jan. 25, it plans to increase loans to commercial banks secured on treasury bills this year in a move aimed at reviving the domestic debt market. The market has been at a virtual standstill since Russia's 1998 financial…
Cyprus cbank expected to leave rate steady Jan 26
Cyprus's central bank is expected to leave itskey interest rate unchanged when its board meets on Jan 26, bank sourcesand independent analysts said.
Estonian 2000 domestic lending growth high-c.bank
Estonian total domestic lending in 2000 grew 30.6 percent year-on-year to stand at 34.7 billion kroons ($2.05 billion) at the end of December 2000, the central bank said on Jan. 25.
Manila cuts interest rates
The Central Bank of the Philippines decided Jan. 25, 2001, to implement a further cut of 50 basis points in both the overnight borrowing and lending rates to 12.0 percent and 14.25 percent, respectively. The bank's move to cut interest rates, which takes…
Lithuanian cbank okays draft bill for litas repeg
Lithuania's central bank said on Jan. 25 its board approved a draft amendment to law aimed at clearing the path for a shift in the litas currency's peg to the euro from the dollar without devaluation."The main goal of this amendment is to ... give…
Indonesia plans talks with IMF, World Bank
Indonesia will hold talks with top IMF and World bank officials during the World Economic Forum (WEF) in Davos to determine if it can secure funds to help prop up its shattered economy. Chief economics minister Rizal Ramli is due to meet World Bank chief…
Zambia economy on mend,2000 growth seen near 4%
Zambia's economy is on the mend after a strong showing by the key mining sector late last year, and is likely to show growth approaching the government's four percent target for 2000, analysts said on Jan. 25.
Ex-BOJ Wakatsuki - No return to zero rates
The Bank of Japan (BOJ) is likely to keep the key short-term rate target at 0.25 percent for some time, and a return to providing free money was improbable, former BOJ director Mikio Wakatsuki said on Jan. 25. "I think the BOJ will keep the key short…
IMF stresses need for BI independence
The International Monetary Fund (IMF) reiterated on Jan. 25, 2001, the importance of maintaining the independence of Bank Indonesia and its monetary policy to ensure the recovery of the country's economy. "It's important for Indonesia to maintain the…
Colombia cbank sees 01 inflation 7.6% vs 8.0% goal
Colombia's central bank projects inflation to fall to 7.6% this year and 6.9% in 2002, according to the body's December 2000 inflation report, released on Jan. 26, 2001. The 2001 figure is down from the official goal of 8.0% and year 2000 final result of…
Greenspan-quicker Fed transcripts undesirable
Federal Reserve Chairman Alan Greenspan said on Jan. 25 the U.S. central bank should not be forced to more quickly release full transcripts of its monetary policy deliberations. The Fed currently releases the transcripts of Federal Open Market Committee…
Low inflation, US rates led to Brazil rate cut
Falling U.S. rates and confidence that inflation will fall to established targets this year prompted Brazil's central bank to cut interest rates for the second month running on Jan. 17, according to the minutes of the bank's policy meeting released Jan…
Bank of Israel posts $1.6bn excess expense in 2000
The Bank of Israel said on Jan. 24 its expenses exceeded income by 6.7 billion shekels ($1.6 billion) in 2000 compared with an 8.7 billion shekel deficit in 1999. "This was the result of two main factors: The first, an excess of 3 billion shekels in…
UK's MPC voted 5-4 to leave rates steady in Jan
Britain's central bank was split almost down the middle over whether to cut interest rates this month, with five of the nine members voting to leave rates steady at 6.0 percent while four wanted to lower borrowing costs. The Bank of England's chief…
RBNZ sees reduced inflation risk
New Zealand debt markets ended strongly on Jan. 24 after the Reserve Bank's comments on the inflation outlook were interpreted as having a dovish tone for rates. The central bank, in leaving its official cash rate unchanged at 6.50 percent, said it saw a…
Irish economy 'inconsistent' with rest of EU
The European Union's economic and monetary affairs commissioner, Pedro Solbes, said the Irish economy is "inconsistent" with that of the other member states. The commissioner has warned in the past that inflation is too high in Ireland and that the…
Zimbabwe inflation surges to 70%
Reserve Bank of Zimbabwe governor Leonard Tsumba said in Jan 2001 averageinflation is expected to rise to about 70 percent in 2001 from 55,7percent in 2000, further threatening the fragile economy.