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Central Banking

Fukui rules out early BoJ rate rise

Toshihiko Fukui, governor of the Bank of Japan, sought to lower expectations on Thursday 16 March that an early interest rate rise would follow the end of the BoJ's ultra-loose monetary policy last week.

SNB hikes rates as expected

The Swiss National Bank (SNB) raised interest rates by 25 basis points on Thursday 16 March, saying that the economy is gaining further momentum and is becoming increasingly broad-based.

Comment: The Fed's 'asymmetric policy'

Donald Kohn said yesterday that the perception that the Fed responds asymmetrically to asset prices is "a misreading of history". Not only has the idea of a 'Greenspan put' been debunked by the experiences of the last five years, but it is also…

Liquidity provision in a model of payments

The Federal Reserve Working Paper "Alternative central bank credit policies for liquidity provision in a model of payments" explores alternative central bank policies for liquidity provision in a model of payments.

ECB's Bini Smaghi on financial market supervision

In the speech 'Independence and accountability of supervision in the european financial market' given on 9 March Lorenzo Bini Smaghi of the ECB said the increasing European financial integration poses difficult challenges for the institutional…

SF Fed's Yellen on enhancing Fed credibility

In the speech 'Enhancing Fed credibility' given on 13 March Janet Yellen of the Federal Reserve Bank of San Francisco said the Federal Reserve's credibility would be enhanced if the central bank would establish a specific numerical inflation target.

Fed's Olson: Are banks still special?

In the speech 'Are banks still special?' given on 13 March Mark Olson of the Federal Reserve said the line that divides banking from commerce is not a clear one and should be subject to "negotiated compromise" as markets and products change.

Trichet says euro zone growth around 2%

European Central Bank president Jean-Claude Trichet said in an interview to be published Thursday 16 March that survey data suggests the euro zone economy will grow at its potential rate of around 2 pct.

BoJ's Muto says price range is not target

Bank of Japan deputy governor Toshiro Muto said on Wednesday 15 March that although the BoJ has a price stability range of between 0-2 percent rises in consumer prices, this does not mean the central bank will keep rates at zero until inflation tops that…

Comment: Yellen's 'long-run' inflation target

San Francisco Fed president, Janet Yellen, who has emerged as one of Ben Bernanke's strongest allies in the inflation targeting debate at the Fed, provided further insights into what she regards as the optimal design of such a framework in a speech on…

Japan's Abe wants BoJ zero rate to stay

Shinzo Abe has urged the Bank of Japan to keep interest rates at almost zero per cent until the economy has fully emerged from deflation. Meanwhile, Kaoru Yosano also said on Wednesday 15 March that there is no gap between the government and the BoJ in…

Polish finance minister defends NBP

I was, am and will be for an independent central bank, Polish Finance Minister Zyta Gilowska announced on Tuesday 14 March in Brussels, according to the PAP News Agency, when asked about recent political controversies around the Polish central bank (NBP).

Market of foreign exchange hedge in Brazil

The IBMEC Economics Discussion Paper "The market of foreign exchange hedge in Brazil: Reactions of financial institutions to interventions of the central bank" says that between 1999 and 2002, Brazil's central bank sold expressive amounts of dollar…

Excess liquidity clinches case for ECB rate rises

According to this recent article, several factors, including a lack of dissenting voices on the ECB Governing Council, have persuaded financial markets in recent days that the ECB is heading faster than previously expected toward an interest rate of 3…

Hannoun: Internationalisation of financial service

In the speech 'Internationalisation of financial services: implications and challenges for central banks' given on 4 March (published 13 March) Herve Hannoun of the BIS said there is a dual challenge for central banks in the context of financial…

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