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Central Banking

SARB Monetary Policy Review, May 2006

The South African Reserve Bank published its Monetary Policy Review for May 2006 on Thursday 11 May. Forecasts suggest that the inflation outlook has improved significantly, and there is evidence that inflation expectations and wage settlements are…

Fed raises rates to 5%

The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."

Comment: US Treasury diplomacy

In what has been billed as a key moment in American economic diplomacy, the US Treasury this week resisted temptation and political pressure by deciding not to formally accuse China of currency manipulation.

China's yuan progress 'far too little'

The US government on Wednesday 10 May did not accuse China of manipulating the value of its currency, but said Beijing had made "far too little progress" in adopting a flexible exchange rate.

Bank of England Inflation Report, May 2006

The Bank of England published its May 2006 Inflation Report on 10 May. In remarks following the publication of the report, Mervyn King said the Monetary Policy Committee 'remains ready to take whatever action is necessary in order to keep inflation on…

Canada's Longworth on economic development

In the speech 'The crucial contribution of the financial system and monetary policy to economic development' given on 5 May David Longworth of the Bank of Canada emphasised that behind the abstract concept of financial system efficiency lies a very…

Sveriges Riksbank Economic Review 1st Quarter 2006

The Sveriges Riksbank has published its Economic Review for the 1st Quarter 2006.The latest edition contains four articles, 'Financial asset management at the Riksbank,' 'Controlling legal risks in financial asset management,' 'How do large current…

Central bank intervention and ex rate volatility

The St Louis Fed Working Paper "Central bank intervention and exchange rate volatility, its continuous and jump components" analyses the relationship between interventions and volatility at daily and intra-daily frequencies for the two major exchange…

Why economists worry about foreign reserves

According to the article "Why economists worry about who holds foreign currency reserves" published Tuesday 9 May, the idea that China or some other American rival could someday use its vast holdings of U.S. debt as a geopolitical weapon is gaining…

BoJ names new executive director for operations

The Bank of Japan said Tuesday 9 May that it has promoted Hajime Mizuno, director-general of the BoJ's operations department, to the post of executive director in charge of operations and payment and settlement systems.

Comment: Bank of England Inflation Report

British bond yields fell yesterday, despite an increase in the Bank of England's near-term inflation forecast. The Bank of England's latest Inflation Report also included a lower growth forecast for next year, which is expected to outweigh the effects of…

Weber charts course for ECB rate rise

European Central Bank council member Axel Weber said in an interview published Tuesday 9 May that interest rates need to be increased by at least a quarter point to curb inflation in the eurozone.

Prerequisites of a single Gulf currency

According to this article published Monday 8 May, the issuance of a single currency by 2010 in the Gulf Cooperation Council (GCC) member states will crown Gulf economic integration efforts.

A hands-off central banker?

According to the Working Paper "A hands-off central banker? Marriner S. Eccles and the Federal Reserve Policy, 1934-1951" published April 2006, the Federal Reserve after 1935 acquired new instruments to command monetary policy, but it did not change its…

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