News
Italy withdraws proposal on ECB statutes
EU Presidency holder Italy is reported to have withdrawn a proposal to simplify procedures for changing the ECB's statutes in response to protests from the central bank, according to Boersen-Zeitung. Jean-Claude Trichet wrote to Italian Foreign Minister…
ECB's Issing: Rate impact from deficits action
European Central Bank Chief economist Otmar Issing has said in a newspaper article that the decision to effectively suspend the stability and growth pact carries serious risks for the eurozone, according to Reuters.
Israel central bank head sees economic progress
Bank of Israel Governor David Klein said that the recovery in the global economy, and improvements in the political and security environment should help Israel emerge from a three-year-long recession, according to a Reuters report.
IMF warns of 'downside risks' to Canada's economy
The IMF said on Tuesday 9 December, in its annual report on Canada, that the Canadian economy was resilient and it agreed with the consensus view that Canada's near-term outlook is "broadly favourable", according to CNC News. But it warned of downside…
Fed upbeat about economic rebound
In their final meeting of the year on Tuesday 9 December, Fed Chairman Alan Greenspan and his colleagues offered their most upbeat assessment of the economy in recent months, reports Associated Press. In another encouraging note, Fed policy-makers said…
Britain announces new inflation measure
UK chancellor Gordon Brown announced to parliament on Wednesday 10 December that Britain will in future use the harmonised index of consumer prices (HICP) to measure inflation, reports EU business. The new measure, which is already used by the European…
Japan's economy set to grow 1.5 percent
Japan's Cabinet Office said on Tuesday 9 December that the economy is expected to grow by 1.5 per cent in 2004, according to the Mainichi Daily News. It also predicted that moderate deflation will continue through 2004, forecasting the consumer price…
RBA chief Macfarlane regrets rate rise
Ian Macfarlane, governor of the Reserve Bank of Australia, said on Monday 8 December that he was sorry interest rates had to go up as it would hurt mortgage holders, according to the Herald Sun. "I suspect it's in this group of people, who are most…
IMF says euro rise won't stall economic recovery
Anne Krueger told reporters on Tuesday 9 December thatthe euro's recent rise against the dollar was not "a negative" but was prompted by economic growth, according to a Reuters report.
Canada's Dodge sees strong end to year
Strong global demand for Canadian goods and the holiday shopping season should allow the nation's economy to finish a rough year on a high note, Bank of Canada Governor David Dodge said in a speech on Monday 8 December, reported by the Ottawa Business…
Korea to be 'major financial player' - government
The Korean government believes it is emerging as a major financial player, reports the Korea Herald, with its plans to embark on more aggressive and large-scale fund management starting next year.
Gold investors hope for new central bank accord
Since 1999 the gold price has soared by more than 39 per cent even as European central banks have sold more than 1 594 tons of bullion from their reserves. But what those central banks do next could determine where gold goes from here, reports Bloomberg.
Offshore centres complain to WTO re FATF
A group of offshore centres have lodged a complaint with the World Trade Organisation (WTO) about the imposition of international money laundering rules by the FATF, Basel committee and OECD.
US congress raises doubts over Basel II
The prospect that the US Congress would block ratification of the new accord seems to have increased following a letter from the house committee on financial services which has been scrutinising the accord.
Former Boston Fed boss to head Freddie Mac
Richard Syron, president of the Boston Fed from 1989-94 and in charge during the bailout of New England's largest bank, was appointed chief executive and chairman of Freddie Mac on Sunday 7 December.
Official gold sales may rise - ex BIS FX head
A renewal of the Central Bank Gold agreement - which runs out in September 2004 - could raise the amount sold by 20%, according to the former head of foreign exchange and gold at the Bank for International Settlements.
Ortiz gets the nod for second term
Vicente Fox, Mexico's president, nominated Guillermo Ortiz for a second six-year term as governor of the central bank on Friday 5 December. Santiago Creel, the interior secretary, said at a news conference Friday that Ortiz's nomination had been formally…
BIS Quarterly Review - Dec 2003
The latest quarterly offering from the BIS includes updates on the world economy, international banking, debt and derivative markets as well as special features on the credit spread puzzle; common factors in emerging market spreads; sovereign credit…
The future of Europe's payments: Target 2
The Eurosystem's payment system - Target - is set for a restructuring which will place emphasis on consolidation and cost effectiveness of the existing linked national payment systems. In this brochure the ECB outlines what Target 2 will require of…
ECB press conference with questions and answers
At the ECB's post meeting press conference on Thursday 4 December, Jean-Claude Trichet said the overall fiscal framework of the Stability and Growth Pact remains of central importance and should be fully respected. The same applies to the requirement to…
Riksbank leaves repo rate left unchanged at 2.75%
Sveriges Riksbank, the central bank of Sweden, left interest rates unchanged at its meeting on Thursday 4 December. In a statement the Riksbank said its assessment of international economic activity had not changed significantly in recent months but…
Report by Task Force on Major Financial Disruption
Bank of England's Task Force publishes report on whether new statutory powers are needed to deal with major operational disruption, 3 December 2003. In the report Sir Andrew Large, deputy governor, said financial institutions should reassess large…
Jurgen Stark on ECOFIN Council decision
In a statement following the ECOFIN Council's decision on the stability and growth pact, Bundesbank Vice President Jurgen Stark said the "decision of the ECOFIN Council threatens to break the political consensus of the Maastricht Treaty, which is also…
Korean cb, government differ on reserve management
A Korean presidential committee has said it will grant a soon-to-be-established corporation management control over about $20 billion in foreign reserves despite objections from the Bank of Korea, according to the Korea Herald. The BOK argued that the…