News
Solbes rebuffs O'Neill over interest rate cuts
EUROPE - European Economic Affairs Commissioner Pedro Solbes on Apr 23 raised the heat ahead of a meeting of Group of Seven finance ministers by rejecting U.S. Treasury Secretary Paul O'Neill's prescription for the euro zone.
Bank of France sees Q1 consumer spending rebound
FRANCE - French consumer spending, seen as the nation's best buffer against the impact of international economic slowdown, is believed to have rebounded in the first quarter of 2001, the Bank of France said on Apr 23.
Bank of Israel strike postpones interest rate cut
ISRAEL - In an unprecedented move, the Bank of Israel said on Apr 22 that it would delay its May interest rate decision because an internal labour dispute has disrupted the flow of key statistical information and analsyis.
Czech cbanker sees no CPI impact from deficit
CZECH REPUBLIC - Czech central bank Vice-Governor Oldrich Dedek said on Apr 23 the poor state of public finances remains a concern but he expects to see no inflationary impact from it in 2001.
Gulf to make dollar peg to monetary union-report
BAHRAIN - Members of the Gulf Cooperation Council have agreed to adopt the U.S. dollar as the sole peg for a proposed single currency for the group, senior GCC official said in remarks published by Bahraini newspapers on Apr 22.
Yen weak vs dollar - ex-MOF Sakakibara-Kyodo
JAPAN - The yen is likely to remain weak against the dollar for the time being, Eisuke Sakakibara, a former vice finance minister for international affairs, said in an interview with Kyodo News this week.
EU president's statement after Ecofin meeting
EUROPE - Following is the text of an introductory statement by the European Union's Swedish president following the first session of the informal Ecofin meeting on Apr 21.
Eastern Europe, CIS face slower growth-EBRD report
EASTERN EUROPE - Eastern Europe and the former Soviet Union face a sharp reduction in economic growth and a growing imperative to step up the pace of reform, the European Bank for Reconstruction and Development said on Apr 22.
India's c.bank sets stiffer bank investment norms
INDIA - The Reserve Bank of India said on Apr 23 it had set more stringent guidelines for banks' exposures to the stock market following recommendations made by an expert panel.
Settlement system to remain in New Zealand
NEW ZEALAND - The Reserve Bank of New Zealand announced on Apr 18 that its plan to move the hardware used for inter-bank settlements in New Zealand to Sydney will not proceed.
Foreign exchange origins of Japan's economic slump
ARTICLE - Ronald McKinnon from Stanford University and Kenichi Ohno from Tokyo's National Graduate Institute for Policy Studies have written an article on "The Foreign Exchange Origins of Japan's Economic Slump and Low Interest Liquidity Trap". The…
EMU not all it's cracked up to be
ARTICLE - Fabrice Collard and Harris Dellas from the Centre for Economic and Policy Research have published a paper "Exchange Rate Systems and Macroeconomic Stability". One of the article's vital conclusions is that the justification of the single…
O'Neill mystified by Europe's complacency-FT
EUROPE - Paul O'Neill, U.S. Treasury secretary, said on Apr 19 that he was "mystified" by European leaders' claims that Europe would not be affected much by a U.S. downturn, the Apr 20 overseas edition of the Financial Times reported.
Malaysia concedes IMF role in Asia forex swap deal
MALAYSIA - Malaysia will bow to a majority decision on whether the IMF plays any role in an Asia-wide currency swap safety net aimed at protecting countries facing balance of payments problems, Prime Minister Mahathir Mohamad said.
Bank Indonesia governor says he can't be replaced
INDONESIA - Bank Indonesia Governor Syahril Sabirin said that President Wahid would not be successful in removing him from office because regulations prevented it.
China's cbank drafts e-banking regulations
CHINA - China's central bank is drafting regulations concerning e-banking and guidelines for e-banking risk management, which are expected to be promulgated soon, a top bank official announced.
Honduras not ready to adopt dollar-central banker
HONDURAS - A large trade deficit and limited foreign currency reserves mean Honduras is not ready to follow in the footsteps of neighboring El Salvador and dollarize its economy, Central Bank President Victoria Asfura said on Apr 19.
India may cut interest rates
INDIA - India's central bank has indicated an intention to cut interest rates to help revive the slowing economy. The governor made his comments at a presentation on monetary policy for this year.
ECB says bases policy on too slow, inaccurate data
GERMANY - The European Central Bank said on Apr 19 that the data on which it based policy decisions was often not timely or accurate enough for the job.
Debelle becomes RBA head of economic analysis
AUSTRALIA - The Reserve Bank of Australia has appointed Dr Guy Debelle as head of the economic analysis department, replacing Malcolm Edey.
Estonian cbank 2000 profit 158.3m EEK
ESTONIA - The Estonian central bank said on Apr 19 its council had closed the books on its 2000 financial year that ended with 158.3 million kroons ($9.02 million) profit.
Nigeria's cbank up banks' cash deposit to 40%
NIGERIA - Nigeria's Central Bank on Apr 19 announced it has raised the percentage of deposits that banks must now keep in cash to 40 percent from 35 percent.
European fin mins meeting to discuss growth, ECB
EUROPE - European finance ministers meeting in Malmo this weekend have put the European Central Bank on notice that it had better explain its refusal to cut interest rates amid gathering gloom for global growth.
Tsang fights for Exchange Fund independence
HONG KONG - Financial Secretary Donald Tsang has rejected the Democratic Party's request to freeze a Hong Kong Monetary Authority plan to spend HK$4 billion from the Exchange Fund on new offices.