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Central Banking

India following 'passive policy' on gold

Reserve Bank of India governor, Yaga Venugopal Reddy, said on Tuesday 6 December that the federal government and the Reserve Bank of India (RBI) have been following a "passive policy" on its gold holdings.

Jarai says Fitch downgrade will raise rates

Hungary's central bank governor Zsigmond Jarai said on Wednesday that Hungary's downgrading by ratings agency Fitch on Tuesday6 December would increase risk premiums but would not affect the economy in the short term.

BOJ's Haru says reserve target may be cut

Bank of Japan policy board member Hidehiko Haru said the BOJ may have to lower its reserve target range before it concludes its ultra-easy monetary policy, if it becomes difficult to keep to the present range, which is set very high.

Treasury management system for Bulgaria

The Bulgarian National Bank is gearing up for entry to the European Union (promised for 2008 or 2009 at the latest) by ensuring it will meet the 1 January 2007 deadline for compliance with the revised Eurosystem standards for treasury management…

Comment: Reshuffle at the ECB?

When Otmar Issing retires from the ECB's 6-member executive board next year, Germany's seat is likely to be taken by Jurgen Stark, currently vice-president of the German Bundesbank.

Score so far is ECB, 1; Unsolicited advisers, 0

This article published on Thursday 1 December looks at the ECB's decision to raise interest rates at its most recent meeting, saying Europe's finance ministers would be better served by putting their own houses in order rather than telling Monsieur…

IMF Paper on capital account liberalization

The IMF Working Paper "Capital account liberalization, capital flow patterns, and policy responses in the EU's new member states" discusses the experience of the EU's eight new member countries (EU8) between 1995 and 2003 when the bulk of capital account…

Fed's Olson on economic growth

In the speech 'Economic growth: Lessons from the Sioux Falls experience' given on 5 December Mark Olson of the Federal Reserve said the Fed can best promote a credit climate that fosters rural progress by maintaining an environment of low inflation.

Bank of Canada raises interest rates

The Bank of Canada announced on Tuesday 6 December that it is raising its target for the overnight rate by one-quarter of one percentage point to 3 1/4 per cent. In a press release the bank suggested rates would rise further saying, "some further…

ECB and NCBs release joint statistics

On Tuesday the European Central Bank (ECB) and the national central banks (NCBs) of the euro area for the first time released joint tables of euro area statistics and their national breakdowns on their websites.

BNB implements new treasury management system

The Bulgarian National Bank has strengthened its accession strategy through the implementation of The Trema Suite as its new treasury management system covering Front-, Middle- and Back Office for their reserve management operations.

Fukui says Japan ready for monetary policy shift

Bank of Japan Governor Toshihiko Fukui told his Group of Seven counterparts that the central bank will move away from its monetary policy stance eventually, once the condition of sustainable rising consumer prices is met, Kyodo News Agency reported.

Comment: Turkey to target

Governor Sureyya Serdengecti's announcement on Monday 5 December that the Central Bank of Turkey will adopt formal inflation targets from January 2006 marks another step along the road of monetary policy reform that has seen Turkey shrug off its volatile…

Deflation looms as China's economy cools off

According to this article published Wednesday 30 November, Chinese officials seem to be pulling off an orderly deflating of their nation's economic bubble. Along with this year's deftly handled 2.1 percent revaluation of the yuan, the feat suggests…

Fed's Greenspan on international imbalances

In the speech 'International imbalances' given on 2 December Alan Greenspan of the Federal Reserve warned about the urgency for the United States to tackle its huge budget deficits to preserve the global economy's health.

G7 on money laundering & terrorist finance

We are committed to fight against those who seek to abuse the international financial system for criminal or terrorist purposes, a statement released on Saturday 3 December following the G7 meeting in London said.

Ferguson on recent changes in household finances

In the speech 'Recent changes in household finances and home lending' given on 18 November Roger Ferguson of the Federal Reserve said U.S. financial regulators should study why blacks tend to get more higher-priced mortgage loans than non-Hispanic whites.

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