News
Inflation targeting comes under fire
The theory of central bank inflation targeting has been ripped up by Harvard economist Benjamin Friedman. Speaking at the Reserve Bank of India he said inflation targeting hides other goals and impedes transparency.
IMF's Rato calls on ECB not to raise rates
International Monetary Fund managing director Rodrigo Rato asked the European Central Bank in an interview published on Friday 11 February not to raise eurozone interest rates.
Core inflation low, US economy good says Stern
Minneapolis Federal Reserve President Gary Stern provided an upbeat assessment of the US economy in a speech on Thursday 10 February, saying core inflation remains low and that the economy should grow at a 3.5 per cent to 4.0 per cent range.
Philippines removed from money laundering list
The Philippines has been removed from a list of money laundering havens held by the Financial Action Task Force (FATF,) central bank governor Rafael Buenaventura said on Friday 11 February.
Tanigaki urges BOJ to keep injecting liquidity
Japan's Finance Minister Sadakazu Tanigaki expressed a cautious position on the chances of the Bank of Japan lowering its current account balance target from the present level, and called on the central bank to keep injecting ample liquidity.
Eurosystem and Mediterranean central banks seminar
The second Euro-Mediterranean seminar, which brings together Eurosystem and Mediterranean central banks, was jointly organised by the Banque de France and the European Central Bank (ECB) and held in Cannes on 8 and 9 February 2005.
Taiwan's foreign exchange reserves increase
Taiwan's foreign exchange reserves totalled US$242.7 billion at the end of January, up US$1 billion from a month earlier, according to the latest statistics released by the Central Bank of China (CBC).
Bank Negara's reserves reach new high
Bank Negara Malaysia's foreign reserves reached a new high of RM264.66 billion (US$69.64 million) in the second half of January, due partly to larger inflow of portfolio funds.
Issing: Asset price rises can harm price stability
The chief economist at the European Central Bank, Otmar Issing, warned in a column on Thursday that a bubble in asset prices could pose risks to overall price stability.
Bank of Spain to implement business process system
TIBCO Software Inc. announced Thursday that the Central Bank of Spain, Banco de Espana, has chosen TIBCO to serve as its core provider for the automation of its business processes.
Zambia withdraws fading plastic bank notes
Zambia's central bank told commercial banks and financial institutions on Wednesday to withdraw from circulation plastic bank notes printed in 2003 because they are fading.
San Francisco Fed's Bretton Woods conference
The Federal Reserve Bank of San Francisco held a conference "Revived Bretton Woods System: A new paradigm for Asian development" on 4 February. Papers presented included Barry Eichengreen's "Global imbalances and the lessons of Bretton Woods".
Atlanta Fed's Guynn says FOMC language may change
Federal Reserve Bank of Atlanta President Jack Guynn said in an interview with the Wall Street Journal that the bank may soon need to remove the word "measured" from its policy statement regarding interest-rate increases.
IMF analysing options on gold
The International Monetary Fund is currently preparing a report on the possibility of selling or revaluing a portion of its gold reserves and the IMF staff analysis of the options will be eagerly awaited.
ECB's Liebscher says rates need not increase
European Central Bank council member Klaus Liebscher said in an interview he sees no reason to increase interest rates as a "weak" labour market helps bring down inflation.
EU's Juncker supports US comments on deficit
Luxembourg Prime Minister Jean-Claude Juncker said in a television interview Wednesday that U.S. pledges to reduce its budget deficit are a step in the right direction.
Flexibility in liquidity target says BOJ's Suda
Speaking on Wednesday Bank of Japan Policy Board member Miyako Suda said the central bank may need to be more flexible regarding its liquidity target when cash demand is low in the market.
Cost of UK's fight to stay in ERM
Britain's Treasury has released internal papers giving various estimates of the cost of intervention before and during "Black Wednesday" in 1992
BoF's Noyer says French GDP forecast plausible
In an interview on Monday 7 February, Bank of France governor Christian Noyer said the government's 2.5 per cent forecast for GDP growth in 2005 is plausible, although economists have suggested the figure is too optimistic.
ECB's TARGET2 Progress Report
The ECB published a progress report on TARGET2 on 8 February. The report considers three main issues - service, pricing and migration to TARGET2. These issues were decided upon by the Governing Council on 16 December 2004.
Russia's euro reserves increase
The euro now accounts for one third of Russia's foreign currency reserves, a top official from Russia's central bank said on Tuesday 8 February.
Iraq to earn income on reserves via NY Fed account
The central bank of Iraq is to be allowed to open a deposit with the Federal Reserve Bank of New York which will earn it millions of dollars in vital interest income, US Treasury Under Secretary John Taylor said on Tuesday 8 February.
ADB chief urges flexible exchange rates for China
Speaking to reporters on Tuesday 7 February, the head of the Asian Development Bank urged China to adopt a more flexible currency exchange system, saying that removing the yuan's peg to the US dollar would be good for both Beijing and its neighbours.
Takenaka calls for money supply increase
Economic and fiscal policy minister Heizo Takenaka said the Bank of Japan and the government should work together to increase money supply growth to end more than six years of deflation.