News
IMF lowers its growth forecast for euro zone
The IMF cut its growth forecast to 0.5 percent this year from an April forecast of 1.1 per cent, according to a report by Bloomberg. The report also said while the euro's exchange rate has "stabilised", the US fiscal and current account deficits, as well…
Fed leaves key interest rate at 1 percent
The Federal Reserve signalled on Tuesday 16 September that interest rates would be kept low for a "considerable period", according to Associated Press. The Fed's assurances in August and this month that it will keep rates low for a considerable period…
RBA signals no more interest rate cuts
Reserve Bank of Australia deputy governor Glenn Stevens said on Wednesday 17 September "Although in early June a case to ease looked like it was building, it had not strengthened sufficiently by the time of the July meeting to warrant action", reports…
MPC minutes point to UK interest rates rise
Bank of England minutes released September 17 show that for a majority on the MPC, it was a "clear-cut" decision to leave rates unchanged in September. The decision to hold the Bank's main interest rate at 3.5 per cent was decisive, but for some members…
Zimbabwe tries to tame cash crisis with new money
The Reserve Bank of Zimbabwe intends to introduce "bearer cheques" next week in an attempt to alleviate the desperate shortage of cash in the country, Sapa AFP reports. The cheques were printed on banknote paper, looked like banknotes and were as "good…
Gold sales not on official IMF agenda-Welteke
Ernst Welteke said on Wednesday 17 September that renewal of the Washington Accord on gold sales would not be on the agenda at the Dubai IMF meeting scheduled for this weekend, according to Reuters. Welteke did repeat his regularly stated position,…
Norges Bank statement on interest rate cut
Statement from Norges Bank, the central bank of Norway, on its decision to reduce the sight deposit rate, by 0.5 percentage point to 2.50 per cent, with effect from 18 September.
Non, je ne regrette rien
It may be the eve of Wim Duisenberg's departure from the ECB, but if anyone was hoping for a token show of contrition from the stern Dutchman for his occasional indiscretions, they will have been sorely disappointed.
Sweden spurns the euro
Europe's unifiers have been profoundly shaken by Sweden's unambiguous decision to steer well clear of the euro for the time being. Both the Riksbank and the ECB have since publicly been at pains to clarify that the result of the referendum will have no…
Ill wind blows at Riksbank
On a rather breezier note, in August the Riksbank paid out over $100,000 in compensation to a disgruntled employee. 44-year-old computer technician Goran Andervass had fallen out with one of his colleagues after being "provoked by a disgusting fart - a…
What's goin' on?
Bank of England MPC member Stephen Nickell has just accomplished the rather unenviable task of explaining what the switch from an inflation target based on the RPIX index to the HICP index, as used in Europe, actually means. Inflation indexes: who cares?…
Governors in a fix
A number of governors are in a tight spot. In the Philippines, the Supreme Court has dismissed the criminal charges filed against governor Rafael Buenaventura - but it's not over yet. In Zimbabwe, the central bank remains without a governor, despite the…
RBNZ Monetary Policy Challenge winner announced
Tawa College, Wellington, has won the Reserve Bank of New Zealand's 2003 Monetary Policy Challenge school competition, held on 16 September.
Bank of Japan upgrades view of economy
The Bank of Japan raised its assessment of the Japanese economy in its September monthly report, published on September 16. According to Associated Press, the report said that "Economic activity still continues to be virtually flat as a whole although…
BoE Nickell: HICP will not affect monetary policy
Speaking on September 16 Bank of England Monetary Policy Committee member Stephen Nickell said, according to AFX UK, that the move to the HICP measure of inflation later this year would have little noticeable difference in the short run and in the long…
Fed economist- Inflation target brings credibility
St. Louis Fed economist William Gavin said on Monday 15 September that a formal inflation target would not be a big constraint on the Fed's freedom to set monetary policy and that the U.S. central bank's current commitment to keeping inflation stable was…
Cuba central bank chief says forex control working
Cuban central bank President Francisco Soberon said on September 15 that foreign exchange controls on state enterprises has substantially increased the central bank's reserves and made it easier to implement monetary policy, according to Reuters.
Bosnian central bank chief allays bankruptcy fears
The Governor of the central bank of Bosnia-Hercegovina, Peter Nicholl, has rejected claims that the country could soon go bankrupt, saying that foreign debt is moderate, according to a report by HINA news agency.
G17 Plus moves to discredit Serbian c bank chief
Serbia's G17 Plus political party has filed an official request with the Serbian Constitutional Court to check the legality of central bank governor Kori Udovicki's appointment, according to Beta News.
Wim Duisenberg on Sweden's euro referendum
In a statement made September 14 ECB President Wim Duisenberg said he took note of the result but said the "outcome of the referendum will neither have an impact on the European Central Bank's policies and operation nor on the euro's position".
IMF launches website in Arabic
The International Monetary Fund (IMF) on September 11 launched an Arabic language section of its website that provides information about the IMF in Arabic.
The Riksbank on the result of the euro referendum
Statement by the Sveriges Riksbank on the decision of Sweden to reject the introduction of the euro on September 14. "The result of the referendum means that the forecasts of inflation in Sweden 1-2 years ahead will continue to determine the way monetary…
European Parliament on the referendum in Sweden
The Chair of the European Parliament's Committee of Economic and Monetary Affairs Christa Randzio-Plath said on September 15 that the Swedish euro vote shows that we politicians have been unable to get the message across to voters - that the Euro will…
Euro rejection will cost Sweden: Prodi
Sweden's "nej" to the euro on September 14 will have both an economic and political price to pay, European Commission president Romano Prodi said. Final results showed the vote split decisively in favour of the no's on 56% against 42% in favour of…