News
Increased hope that Turkey soon out of recession
TURKEY - A much sharper than expected rise in industrial output in Turkey has raised hopes that the country could soon recover from a deep recession. Industrial output rose 14.1% in April from a year earlier, well above a growth rate of 7.8% as predicted…
Rouble to fall as cb's overnight deposit rate cut
RUSSIA - Despite the theme of continuity in exchange rate policy which was emphasized when Sergei Ignatyev took over as head of the Central Bank of Russia in place of Viktor Gerashchenko earlier this year, the bank has subsequently made moves which imply…
US inflation low says Fed nominee Donald Kohn
USA - Federal Reserve Board nominee Donald Kohn said on Thursday that US inflation was "pretty darn low" and that the economy was looking healthy: "we are getting awfully close to some zone of price stability if we are not probably already in it".
Argentina and IMF talks on loans to begin at last
USA - Argentina and the International Monetary Fund will begin talks next week on new loans to revive the economy. IMF spokesman Thomas Dawson remarked on Argentina's "substantial progress" in meeting conditions for the new talks, saying they "have been…
Blejer considers resignation after IMF agreement
ARGENTINA - Argentina's central bank president Mario Blejer is considering resigning once he designs a new monetary programme, implements a plan to convert deposits into bonds and helps obtain a loan from the International Monetary Fund, according to a…
Russia to crack down on bank supervision
RUSSIA - The Central Bank of Russia has vowed to put harsh new measures in place to crack down on supervision over Russia's banks. This move by the central bank, which has recently overhauled its leadership, may cause a large number of banks to shut down.
Japan enjoys strongest growth for two years
TOKYO - Japan's economy has at last emerged from recession, enjoying its strongest growth for two years. The economy has rebounded from three straight quarters of contraction, growing 1.4% in the first quarter, which is an annualised rate of 5.7%.
ECB keeps rate rise on hold as expected
GERMANY - The European Central Bank on Thursday left interest rates unchanged as expected since euro zone recovery remains limp as well as the euro's rally helping to stifle inflation. The ECB's key refinancing rate remains at 3.25 percent, unchanged…
Bundesbank to close 56 branches by 2007
GERMANY - The Deutsche Bundesbank has committed itself to cutting back on its operations which will involve shedding over 10% of its staff. It announced on Thursday that it would close down 56 of its smaller branches within the next five years, partly…
Bank of England leaves rate unchanged at 4%
UK - The Bank of England's Monetary Policy Committee has left its key lending rate unchanged at four percent for the seventh month running as it awaits concrete signs that the economy has shaken off its downturn.
Law passed on Russian cb to weaken banking system
RUSSIA - The Russian State Duma has approved a revised version of the bill on the Central Bank of Russia (CBR). This decision will weaken the entire banking system according to finance minister Alexei Kudrin, since it does not allow the CBR to implement…
Single currency for Russia and Belarus agreed
RUSSIA - Senior central bankers and politicians of Russia and Belarus have signed an agreement on cooperating towards the introduction of a single currency by 2005.
Duisenberg flag furore
NETHERLANDS - The public furore about Gretta Duisenberg's apparent support for the Palestinian cause continues to escalate. After Mrs Duisenberg, the wife of Wim Duisenberg, the president of the ECB, displayed the Palestinian flag in her home in the…
John Hawke puts question mark over Basel Accord
USA - The Basel committee's attempts to finalise a new capital accord have been thrown into doubt in a speech by John Hawke, US Comptroller of the Currency, one of the US representatives on the committee. Speaking to a conference of commercial-sector…
Riksbank leaves repo rate unchanged at 4.25%
PRESS RELEASE - At its meeting on Wednesday, 5 June, the Executive Board of the Riksbank decided to leave the repo rate unchanged at 4.25 per cent. This decision, which will apply with effect from Wednesday, 12 June, is based on the picture of future…
Bank of England maintains interest rates at 4.0%
PRESS RELEASE - The Bank of England's Monetary Policy Committee today voted to maintain the Bank's repo rate at 4.0%. The minutes of the meeting will be published at 9.30am on Wednesday 19 June.
Wim Duisenberg on ECB's interest rate decision
STATEMENT - Wim Duisenberg, president of the ECB, made an introductory statement to a press conference in Frankfurt on 6 June concerning the ECB Governing Council's decision to leave interest rates unchanged.
ECB monetary policy decision, 6 June
PRESS RELEASE - The ECB made its decision on monetary policy on 6 June, leaving rates unchanged.
Bank of Canada raises rates by 1/4%
CANADA - The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 2 1/2 per cent. The operating band for the overnight rate is correspondingly increased, and the Bank Rate is now 2…
Statement by Ian Macfarlane of the RBA, 5 June
PRESS RELEASE - Statement by Ian Macfarlane, Governor of the Reserve Bank of Australia, on monetary policy: "Following a decision taken by the Board at its meeting yesterday, the Bank will be acting in the money market this morning to increase the cash…
Economic prospects looking up says Greenspan
USA - America's economic prospects are looking up according to Fed chairman Alan Greenspan on Tuesday, although he warned that further economic growth in the short term will slow from the January-March pace.
RB of Australia raises benchmark rate to 4.75%
AUSTRALIA - The Reserve Bank of Australia raised its benchmark interest rate for the second time in a month by a quarter percentage point to 4.75%. It is hoped this will put a damper on a housing boom and consumer spending that may fuel inflation.
Congress pushes for inflation targeting at the Fed
USA - A key member of Congress is attempting to pressure the Federal Reserve into adopting an inflation targeting regime. Although there is some support for this at the Fed, Chairman Alan Greenspan is vehemently opposed to the idea.
Slovenia's former cb governor to run for president
SLOVENIA - Slovenia's former central bank governor, France Arhar, yesterday declared his intention to stand as an independent candidate in presidential elections later this year after current president Milan Kucan's second term expires.