Central Banks
'Yes' camp narrows gap in Sweden's euro poll
The gap narrowed to just 5 percentage points between the No and the Yes camps in Sweden on Wednesday 3 September in the campaign to join the euro, according tothe Financial Times. A poll by Demoskop gave the No camp a 44 per cent to 39 per cent lead, the…
OECD urges ECB to be prepared to cut rates
The OECD has said that fiscal measures are unlikely have a significant impact on growth and urged the ECB to be ready to cut interest rates if further signs of weakness in the eurozone economy appeared, according to the Financial Times. OECD chief…
China agrees to allow free yuan float 'eventually'
China's central bank governor, Zhou Xiaochuan, struck a conciliatory tone with US treasury secretary John Snow on Wednesday 3 September, reported the New York Times. He promised that the value of the yuan would eventually be determined by market forces…
SA Finance Minister on Mboweni's pay hike
South African Finance Minister Trevor Manuel has commented on central bank governor Tito Mboweni's 12% pay increase, according to Finance 24, saying that the matter could be taken up by the finance portfolio committee of the National Assembly.
New Zealand leaves Official Cash Rate unchanged
The Reserve Bank of New Zealand has decided to leave the Official Cash Rate unchanged at 5 per cent, 4 September. Governor Alan Bollard said "Current monetary policy settings are consistent with medium-term inflation remaining comfortably within the…
Bank of England holds key rate steady
The Bank of England maintained interest rates at 3.5% on Thursday 3 September, as widely expected, reports Associated Press.
ECB cuts euro-zone growth forecast, holds rates
The European Central Bank held its main interest rate steady at 2 per cent on Thursday 4 September, according to Reuters, and cut its estimate of euro zone growth to "slightly below" the mean of its range of 0.4-1 per cent. The slight downward revision…
ECB would be 'delighted' if Sweden joins euro zone
At the ECB's press conference on Thursday 4 September, the deputy president Lucas Papademos said that the European Central Bank would be "delighted" if Sweden was to join the euro but that the decision was for Sweden to take, eports EU Business.
Fed Reserve Bank of St Louis Review, Sep/Oct 2003
The St Louis Fed has published the latest edition of its Review for September/October 2003. Included in the Review are articles "Institutions for Stable Prices: How To Design an Optimal Central Bank Law" by William Poole and "The 2001 Recession: How Was…
Housing assistance to RBA staff
In a press release the Reserve Bank of Australia attempts to set straight what it calls "quite misleading" references in the press to housing assistance the RBA provides to a small proportion of its staff, 3 September.
Gjedrem: Monetary policy & the economic situation
In the speech 'Monetary policy and the economic situation' given on 2 September Svein Gjedrem of Norges Bank said that even with current interest rates at 3 percent, it remains more probable that inflation over the next two years will be lower than 2.5…
Fukui on the situation of the Japanese economy
In a speech on the current situation of the Japanese economy given on 3 September Toshihiko Fukui of the Bank of Japan said a number of developments indicate that the Japanese economy is moving in a desirable direction, even though it continues to face…
Bank of Canada lowers interest rates
The Bank of Canada lowered its target for the overnight rate by 1/4 percentage point to 2 3/4 per cent on 3 September. In its press release the Bank said since the last interest rate announcement on 15 July, inflation pressures have continued to ease.
Fukui says no quick end to BOJ easing policy
Bank of Japan governor Toshihiko Fukui on Wednesday sought to calm the bond market, Reuters reported, saying "You can rest assured that the ultra-loose policy will stay in place as long as the CPI (consumer price index) is falling or only showing weak…
One week for a deal as IMF team lands in Argentina
An IMF team arrived in Argentina Tuesday with a week to finalise a loan deal and avoid a damaging default, Reuters said. The IMF so far has been unable to convince Argentina to implement unpopular policies the fund says are necessary for a full recovery.
Norway's central bank may cut rates again
Bank of Norway chief Svein Gjedrem repeated Tuesday that inflation is likely to be below 2.5 percent over the next two years leading to speculation that Norges Bank may continue its recent series of interest rate cuts, Aftenposten reported.
RBA unmoved by growth slump, leaves rates on hold
The Reserve Bank of Australia left interest rates on hold for the 15th consecutive month on Wednesday amid the accelerating global economy, according to a report from AFR.
Bank of France's Trichet defends EU deficit rules
Bank of France governor Jean-Claude Trichet warned Wednesday that countries due to join the European Union should prepare carefully for subsequent membership of the euro zone, a report from Agence France-Presse said. He also stood by the much criticised…
Reddy to take over as RBI chief on Saturday
YV Reddy will take up his post as governor of the Reserve bank of India for a five-year term beginning on September 6th, the RBI said Wednesday a report from Reuters said.
Hitachi develops RFID chip for bank notes
Hitachi has developed an RFID (radio frequency identification) chip that requires no external antenna and makes possible the embedding of chips in bank notes, IDG News Service said. A Hitachi spokesman denied media reports Tuesday that the company was…
BOJ quietly fixing data errors
The Bank of Japan has been making corrections to its web site, the Japan Times reported. The errors were described as "minor" by BoJ officials and relates to the average outstanding reserves kept by private-sector banks at the BOJ over the past five…
Gramlich speaks at the 25th anniversary of the NRC
In a speech given on 18 August Edward Gramlich of the Federal Reserve said the Neighbourhood Reinvestment Corporation (NRC) has a history of effective problem solving. At a very early stage it recognized that a secondary mortgage market would be…
SARB's Plenderleith on monetary policy in Africa
In the speech 'Is monetary policy different in Africa?' given on 29 August Ian Plenderleith of the South African Reserve Bank asks are the very evident differences between Africa and the developed countries, for example in economic and social structure,…
Rogoff on globalization and global disinflation
In the speech 'Globalization and Global Disinflation' given on 29 August Kenneth Rogoff of the IMF said the greatest threat to today's low inflation would be a reversal of the modern trend towards enhanced central bank independence, particularly if trend…