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Central Banks

China to intervene and save D'Long

China's central bank may be preparing to intervene to prevent the failure of troubled private conglomorate D'Long Group, in an unprecedented move to avoid financial chaos in China's banking system.

Thailand raises interest rates

The central bank of Thailand raised interest rates by 0.25 percentage points on Wednesday 25 August, bringing its repo rate to 1.5 percent. This follows a series of interest rate cuts which started in 2001, and comes amid signs of accelerating inflation…

ECB study finds inflation targets do work

A recently published working paper by the European Central Bank investigates the impact of inflation targeting, and concludes that explicit inflation targets do have a significant effect on inflation expectations and persistence.

Poland raises interest rate by half percent

The Polish central bank raised its main interest rate to 6.5 percent on August 24, the third rise in as many months. The central bank took the measures to address inflation, which has been rising following Poland's entry into the EU.

Australia's Stevens on economic forecasting

Glenn Stevens, deputy governor of the Reserve Bank of Australia, gave a speech to the Economic Society of Victoria on August 17 on "The thankless task of economic forecasting". He discussed the accuracy of forecasts, how to make forecasts useful, and…

South Africa's Mboweni on challenges in Africa

In a speech on 'Challenges of central banking in Africa' given on 5 August, T T Mboweni, Governor of the South African Reserve Bank, spoke about how the traditional challenges facing central banks apply to African countries, what effet circumstances…

Hungary cuts rates by half percent

The central bank of Hungary reduced the base rate by half a percentage point, from 11.5 percent to 11 percent, when it met on 16 August. While the central bank pointed to improvements in the economy as the cause, it is thought that a desire to weaken the…

India moves to reform government securities market

The Reserve Bank of India may soon lose its position as exclusive banker to the Government of India, reports Business Standard. If the Government Securities Act, which will replace the 1944 Public Debt Act, is passed by parliament, other banks will be…

Sweden's Heikensten on inflation

In a speech on economic developments and inflation prospects, given on August 16, Sweden's central bank governor Lars Heikensten said that the Riksbank's assessment of inflation and economic activity had not significantly altered since its last inflation…

Russia issues forecasts on 2005

The Russian government will continue to target both the exchange rate and inflation next year because its economy is not ready for a free-floating ruble. At the same time, forecasts show a potential boost to the economy from revenues caused by high oil…

Brazil's Meirelles given cabinet status

The president of the Central Bank of Brazil, Henrique Meirelles, has been granted cabinet status in a further development to allegations of his financial misconduct by the national press.

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