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Central Banking

Central Bank of Sri Lanka - Annual Report 2005

According to the Central Bank of Sri Lanka's Annual Report 2005, Sri Lanka's economy demonstrated its resilience once again in 2005 by growing at a rate of 6 per cent, exceeding expectations in the immediate aftermath of the tsunami disaster of 2004.

Blanchflower is 'no shrinking violet'

The Bank of England Monetary Policy Committee's latest member, David Blanchflower, told the Treasury Select Committee on Wednesday 24 May that his commitment to the rate setting MPC will form his "primary responsibility."

Bank of Canada raises rates

The Bank of Canada announced Wednesday 24 May that it is raising its target for the overnight rate by one-quarter of one percentage point to 4 1/4 per cent. The move had been widely expected.

Comment: The BoE's 'brain on the plane'

David Blanchflower came out fighting Wednesday 24 May in an assured performance before the Treasury Select Committee. The appointment of the US-based academic to the Bank of England's Monetary Policy Committee has been controversial, but he maintains…

IMF's Rato says global rate rises healthy

Increases in global interest rates are healthy and policy makers and central banks need to keep a watchful eye on inflation, the head of the International Monetary Fund said in an interview with Reuters on Wednesday 24 May.

BOJ member sees reserve cut problem

According to minutes of the Bank of Japan's April 10-11 board meeting, published Wednesday 24 May, a policy maker said a rapid reduction in reserves by the central bank may spur speculation of an interest-rate increase from near zero.

OECD Economic Outlook, May 2006

The Organisation for Economic Co-operation and Development published its Economic Outlook report for May 2006 on 23 May. In the report the OECD said the European Central Bank should only raise interest rates gradually, once there is clear evidence that…

Bank of Japan Monthly Report, May 2006

The Bank of Japan published the English version of its May 2006 monthly report on Tuesday 23 May. In the report the BOJ left its economic assessment unchanged, but reiterated that the economy is recovering steadily.

ECB's Issing on globalisation, emu and the euro

In the speech "Globalisation, emu and the euro" given on 22 May Otmar Issing of the ECB said reductions in fiscal deficits by eurozone countries actually boost growth in those economies, rather than weighing on economic activity.

Geithner on financial supervision and regulation

In the speech 'Principles to guide the future evolution of financial supervision and regulation' given on 19 May Timothy Geithner of the Federal Reserve Bank of New York said US financial institutions need to examine "the frontier of risk" to make sure…

Hoenig warns on rate overshoot - report

The Federal Reserve must guard against raising interest rates too high, Kansas City Federal Reserve President Tom Hoenig said Friday 19 May in an interview with the Wall Street Journal's Greg Ip.

African central bank sells gold

A private Saudi jeweller has bought 36 tonnes of raw gold from an African central bank for 1.8 billion riyals, a company spokesman was quoted by Reuters as saying on Monday 22 May, confirming a newspaper report.

BOJ's Fukui sees rates rising slowly - report

The Bank of Japan will raise interest rates gradually to keep inflation under control while also giving the economy time to recover, the Nihon Keizai Shimbun quoted BOJ governor Toshihiko Fukui as saying in an interview published Tuesday 23 May.

Bernanke regrets 'lapse of judgment'

Federal Reserve chairman Ben Bernanke said Tuesday 23 May during a Senate Banking Committee hearing that he suffered a "lapse of judgment" when he spoke to a CNBC reporter recently.

New MPC member set for grilling

The newest member of the Bank of England's Monetary Policy Committee is likely to face some tough questions when he faces MPs for his "confirmation" hearing on Wednesday 24 May, the FT reported.

Comment: US 'break-even' inflation

News of a sudden increase in inflation fears has made headlines in recent weeks. In the case of the US, some have linked this to idea that new Fed chairman, Ben Bernanke, is perceived as being too soft on inflation. What do the most recent estimates of…

Fed's Lacker on the evolution of consumer finance

In the speech 'The evolution of consumer finance' given on 18 May Jeffrey Lacker of the Federal Reserve Bank of Richmond said a wave of innovation in consumer credit markets has driven a surge in credit availability for the average consumer, but that…

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