Central Banking
NZ lawmakers to review monetary policy framework
Lawmakers in New Zealand are set to consider new measures to widen the focus on monetary policy and provide the central bank with more policymaking tools.
The "butterfly effect" of small economies
This Reserve Bank of Australia Working Paper studies the implications of foreign-induced indeterminacy for the conduct of monetary policy in a small open economy.
Examining inflation target uncertainty
In this Bank of Japan Working Paper, the authors analyse the interaction between private agents' uncertainty about inflation target and the central bank's data uncertainty.
New RBNZ research bulletin
The Reserve Bank of New Zealand recently released the June 2007 edition of its research bulletin. The first article of this issue looks at how monetary policy influences the general price level.
New Bank of Chile paper on inflation expectations
This paper studies the relationship between inflation compensation and inflation expectations in Chile. The results show that inflation-expectations movements account for about only 25% of the relative returns, indicating that premiums are a very…
PBoC upgrades growth and inflation forecast
The research bureau of the People's Bank of China says the country's economy is expected to grow 10.8% this year, the fastest rate in over ten years.
Shift to e-payments leads to Fed job cuts
The US Federal Reserve reductions in cheque processing is likely to result in more than 210 jobs being cut at the Minneapolis Fed, as consumers shift from paper checks to electronic payments.
IMF: global imbalances matter to Europe
According to an IMF working paper published in June, although Europe in the aggregate is a not a major contributor to global current account imbalances, its trade and financial linkages with the rest of the world mean that it will still be affected by a…
New ECB Research Bulletin
The European Central Bank released it latest Research Bulletin on 29 June. The bulletin contains articles on the international carry trade, financial integration and capital flows in the new EU member states and productivity growth in the euro area.
ECB's Gonzalez-Paramo on financial stability
In this speech delivered in Istanbul on 28 June 2007, Jose Manuel Gonzalez-Paramo, a member of the Executive Board of the European Central Bank, admits that the "analytical foundations are relatively new, as evidenced by the absence of a universally…
Surprise as de Rato resigns from IMF
Rodrigo de Rato, the managing director of the International Monetary Fund, has announced that he would leave the Fund after its next meetings in October. This will be three years after his appointment and before the end of the normal five-year term.
Minister hints at Japanese wealth fund
Japan's Financial Services Minister said on 29 June that the country should debate whether to set up a fund to manage its foreign currency reserves.
Eurozone business confidence remains high
Recovery in the eurozone remains on track and economic confidence dipped only slightly this month, according to the European Commission. Inflation remained steady at 1.9% in June, within the ECB's target range, according to a separate estimate by…
Thailand governor cool on currency risks
Bank of Thailand governor Tarisa Watanagase says she dioes not expect another currency crisis like the one which hit the country ten years ago.
BoC paper: fiscal and monetary interdependence
A new working paper by the Bank of Canada studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level.
Chinense membership of FATF
The Financial Action Task Force has given approval for China to be a full member of the Financial Action Task Force on Money Laundering This is expected to assist the efforts of its banks to expand overseas.
BoE's Gieve: London's City will prosper
Sir John Gieve, a deputy governor of the Bank of England, discussed London's growth as an international financial centre, its effect on financial innovation and the impact of growth in money and credit for the UK economy.
HKMA's Yam: $3bn note is cost-efficient platform
Joseph Yam, chief executive of the Hong Kong Monetary Authority, said on 27 June that a new multi-currency medium term note programme issued by the Hong Kong Mortgage Corporation "will provide a platform for the HKMC to broaden its investor base and…
ECB's financial stability review
The European Central Bank published its biennial overview of sources of risk and vulnerability for financial stability in June.
Mboweni on the commodity boom
Although higher commodity prices have a positive affect on the economy, they create various problems and challenges for economic management, explained Tito Mboweni, governor of South Africa's central bank.
Fed keeps rates at 5.25% for 12th month
The Federal Reserve held interest rates steady 28 June, citing "modest" improvements in recent inflation readings. Fed rates have now remained at 5.25% for 12 months.
Unexpected rate hike in Poland
Poland's central bank surprised market with a second rate hike for this year on 28 June, citing concerns that wage growth will force companies to boost prices.
Bank of England MPC members explain decisions
The testimonies of individual members of the Bank of England's rate-setting monetary policy committee (MPC) before the Treasury select committees on 28 June, provided some clues as to the timing of further tightening.
Czech rates on hold, hikes to follow
The Czech central bank voted 4-1 to keep interest rates on hold at 2.75% on 28 June during its monthly policy meeting. Central bank chief Zdenek Tuma said there was every reason to increase borrowing costs, but that it had not been vital that the central…