Central Banks
China claims success on currency front
The People's Bank of China has said upward pressure on its currency is being reduced with the help of regular open market offerings of central bank bills, according to the Financial Times. "We will persist with the central bank bills for some time to…
Bernanke: Fed could cut rates to zero
In his speech to a University audience on Wednesday 23 July, Reuters reports that Ben Bernanke declared that the Federal Reserve was ready to keep short-term interest rates low indefinitely - even cutting them to zero - to jumpstart the economy and ward…
Malta central bank signs employees agreement
A collective agreement signed on Tuesday 22 July by the Central Bank of Malta provides for improved salaries, better conditions of work and various important changes, according to Malta Media. This is expected to lead to greater efficiency within the…
Thailand's central bank loosens currency controls
Due to an excess of savings, Thailand's central bank will allow local financial institutions to invest up to 500 million dollars abroad, deputy governor Thirachai Phuvanatnaranubala said on Wednesday 23 July, according to a report by Agence France-Presse.
Rachel Lomax and a new era for the MPC
Rachel Lomax's first Monetary Policy Meeting at the Bank of England may have labelled her a hawk for good from day one at the office. An article published by Dow Jones suggests her reluctance to vote for a rate cut when growth is weak may signal distinct…
Bank of England MPC Minutes 9/10 July 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 23 July for the meeting of 9 and 10 July 2003. The MPC acknowledged that it now seemed likely that UK growth in 2003 Q2 had been weaker than the Committee had assumed in…
MPC's Lomax was only dissenter in UK rates cut
The Bank of England's nine member Monetary Policy Committee voted 8-1 for a cut in interest rates at their July meeting, minutes showed on Wednesday 23 July. The Financial Times reported that Rachel Lomax, the new deputy governor, attending her first…
Ueda on Japan's deflation and policy response
In a speech on 'Japan's Deflation and Policy Response' Kazuo Ueda of the Bank of Japan said the deflation of general prices has not been the major problem in Japan. Instead, asset price deflation and its interaction with the financial system and the…
Greenspan proves fallible
An article in American Outlook Today, "Greenspan proves fallible", describes the pedestal upon which Alan Greenspan has been perched as "a bit shaky" saying he disappointed the expectations of the bond market with the FOMC's with only a quarter point…
RBI asks Indian banks to be ready with RTGS
A meeting held at the Reserve Bank of India urged banks to be ready for the introduction of India's Real Time Gross Settlement, which is expected to begin simulated tests before the year end, according to a report by The Hindu. Deputy governor Vepa…
Bundesbank: No hurry for candidates to adopt ERMII
The Bundesbank said in a report that no relaxation should be made of the Maastricht criteria for the new member states, noting that Hungary's budget deficit for 2002 was over 9% of GDP. The report, according to Interfax-Europe, said that most accession…
Snow says U.S. economic growth accelerating
US Treasury Secretary John Snow said on Tuesday 22 July that we are seeing good signs that the US economy is beginning to take off, Reuters reports. Snow said the pace of expansion should pick up substantially in the second half of this year and during…
Bank of Canada's Dodge sees room to cut rates
Bank of Canada governor David Dodge said the Canadian economy appears likely to grow less rapidly than expected, according to Reuters, at least until September this year and perhaps a bit beyond, until business investment grows.
Korean parliament to push BOK reforms
The Korean parliament's Finance and Economy Committee was set to discuss revisions to the law governing the Bank of Korea on Wednesday after a sub-committee met Tuesday, according to a report by Yonhap News.
'Stars are aligned' for U.S. economy- Fed's McTeer
Dallas Fed chief Bob McTeer said on Tuesday 22 July that factors are in place to see a recovery in the US economy and non-inflationary growth could be as much as 5 percent, according to Reuters. "I think all the stars are aligned for the economy to pick…
Serbia names Udovicki as new central bank governor
Kori Udovicki was appointed governor of the National Bank of Serbia (NBS) at a late session of parliament on Tuesday 22 July, the Finanial times reports. She was educated at Yale and pledged to boost ties between the NBS and the government. Udovicki is…
Fed's Bernanke - An Unwelcome Fall in Inflation?
In the speech 'An Unwelcome Fall in Inflation?' given on 23 July Ben Bernanke of the Federal Reserve said in a world in which inflation risks are no longer one-sided, and short-term nominal interest rates are at historical lows, the success of monetary…
Deutsche Bundesbank Monthly Report, June 2003
The Deutsche Bundesbank published the English version of its June 2003 monthly report on 17 July. Price developments in the past few months have been affected by falling oil prices, the report said. The recently observable rise in the prices quoted on…
BoJ willing to take risks to fight deflation
Giving a lecture in Tokyo on Wednesday 23 July, Bank of Japan governor Toshihiko Fukui signalled a willingness to fight Japan's economic slump made worse by deflation. Associated Press reports that Fukui said the BoJ "is willing to take unlimited risks…
"Upside down world" in Peru
Peru's central bank is in a state of flux. Its governor, Richard Webb, has abruptly resigned, lamenting to CentralBankNet that the central bank is caught up in "an upside down world". Webb's flight was prompted by unworkable differences between himself…
Dinkic goes down fighting
If the situation in Peru seems a little unstable, spare a thought for the devastation visited on Serbia's fledgling central bank. The government's use of a legislative blunderbuss to remove Mladjan Dinkic has triggered a sort of apocalyptic self…
McTeer, the Lonesome Dove
While many have criticised the Fed for being not being dovish enough by only cutting rates by a quarter point, this has not spoiled Bob McTeer's good humour.