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Central Banking

Warsh's Fed nomination draws criticism, confusion

President Bush's nomination of the 35-year-old White House aide Kevin Warsh for a seat on the Federal Reserve's board has been greeted with criticism and bewilderment by some former Fed officials and economists, according to this article published on…

Issing says ECB ready to act on inflation risks

European Central Bank Chief Economist Otmar Issing said the bank is not necessarily embarking on a predetermined course of raising interest rates successively but that it is ready to act to contain higher inflationary risks.

Fiji announces new banknote designs

The Reserve Bank of Fiji on Friday 10 February signed an agreement for the printing of a series of new design Fiji banknotes with De La Rue International Limited of United Kingdom.

Gerd Hausler notifies IMF of intention to leave

Gerd Hausler, Counsellor and Director of the International Monetary Fund's International Capital Markets Department (ICM), has notified IMF Managing Director Rodrigo de Rato of his intention to return to Europe and has asked to be released from his…

Albania to adopt inflation target

In this speech delivered in Vienna on January 18, 2006 the Governor of the Bank of Albania, Ardian Fullani, reiterates the central bank's intension to switch to fully-fledged inflation targeting.

IMF letter to the FT

In this letter to the Financial Times on 8 February, 2006, the IMF's assistant director Ashoka Mody, and the Fund's senior resident representative for central Europe and the Baltics, Christoph Rosenberg, question FT columnist Wolfgang Munchau assertion…

Bank of Korea hikes rates again

The Bank of Korea raised its benchmark overnight call rate by 25 basis points at their monthly monetary policy meeting in Seoul yesterday. In doing so, governor Park Seung and his six fellow policymakers raised the overnight call rate to 4%.

BoJ - inflation to accelerate in Q1

The Bank of Japan's (BoJ) nine-member board ended Thursday's monetary policy meeting by keeping policy unchanged. BoJ governor, Toshihiko Fukui, said he expected inflation to accelerate in first quarter of 2006.

BoE leaves rates unchanged

The Bank of England left interest rates unchanged at 4.5% following its two-day monetary policy meeting. The bank's Monetary Policy Committee (MPC) last cut rates in August 2005, when policy rates were reduced by 0.25%.

Big reserve holders in Asia

The president of the Asian Development Bank, Haruhiko Kuroda, told Dow Jones newswires yesterday that "emerging economies in Asia are well advised to decelerate the accumulation of foreign exchange reserves". "Many of them have more than enough", he said.

Comment: BoJ and inflation targeting

As the Bank of Japan's "quantitative easing" policy nears its end, the question of whether the central bank may soon set an explicit inflation target is being hotly debated. Although the BoJ is still resisting the adopting the framework, the tide may…

Geopolitics boost gold - Greenspan

Recently retired US Federal Reserve chariman, Alan Greenspan, is reported to have attributed high gold prices to investor concerns over major geopolitical conflicts and not a reflection of inflation worries.

Palestian transfers can continue - Fischer

The governor of the Bank of Israel, Stanley Fischer, has said Israel can still have economic ties with the Palestinians after Hamas takes over, provided the Islamic militants do not resume attacks on Israel.

Israeli CB deputies to go

The two deputy governors of the Bank of Israel, Meir Sokoler and Avia Spivak, will retire from the central bank at the end of the month. The governor of the Bank of Israel, Stanley Fischer, informed the Israeli Minister of Finance of the move earlier…

Australian rates unchanged

The Reserve Bank of Australia yesterday left the overnight cash rate at 5.5%, following its first interest rate meeting of the year. Australia is in the midst of its most stable economic period in three decades, with only one change in monetary policy in…

Emerging market reserves grow in January

Recent data show significant increases in foreign exchange reserves in a number of emerging market economies in January. The Philippines gross international reserves hit an all-time high of $20.504 billion at the end of January on fresh government…

Asian reform

In this speech given at a Wharton business school forum in Mumbai on 6 January, 2006, the governor of the Bank of Thailand, M R Pridiyathorn Devakula, argues that fast growing intra-regional trade between east Asian economies provides evidence that the…

Research on inflation targetting

In this theoretical paper Felipe F. Schwartzman of Princeton University looks at how inflation-targeting central banks using target bands, as opposed to point targets, can go about addressing both inflation and stability biases.

IMF paper on bank regulation

This new IMF working paper argues that "banks will want to influence the bank regulator to favor their interests, and they typically have the means to do so".

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