Central Banking
ECB cuts eurozone growth forecast
The ECB on Thursday 3 March lowered its forecasts for growth of the eurozone economy this year and next . At a press conference Jean-Claude Trichet also criticised the recent decision by the Ecofin council of European finance ministers to give Greece…
Bank of Italy escapes supervisory power limit
Italy's lower house of Parliament voted on Wednesday 2 March not to remove the Bank of Italy's authority over competition and mergers in the banking sector.
China spends US$195b maintaining yuan peg
The People's Bank of China spent 1.61 trillion yuan (US$195 billion) buying foreign currency last year to maintain the yuan's peg with the dollar, a rise of 40 per cent over 2003.
BSP's Buenaventura on cornerstones of excellence
In the speech 'Strengthening the cornerstones of excellence' given on 10 January (published 25 Feb), Rafael Buenaventura of the Central Bank of the Philippines said when he turns over the reigns of leading the central bank in July this year, he is…
Asian central bankers affecting markets
The dollar's nearlythree-year decline has led many central banks to consider diversifying into other types of money, especially in the face of a more valuable euro. According to this article, the reaction to recent comments from South Korea serves as a…
RTGS & hybrid payment systems: a comparison
This Bank of England Working Paper published on Tuesday 1 March contrasts Real-Time Gross Settlement and hybrid payment systems that are based on payment offset, using a two-period, multi-bank model. It finds that hybrid payment systems outperform RTGS…
Greenspan stresses need for spending cuts
Federal Reserve chairman Alan Greenspan said on Wednesday 2 March that the US economy is growing at a reasonably good pace but the country must tackle its "unsustainable" budget deficits, primarily through spending cuts.
20 years of a floating New Zealand dollar
The Reserve Bank of New Zealand noted on Wednesday 2 March that this week marks the 20-year anniversary of the float of the New Zealand dollar. The bank said that the floating exchange rate regime has weathered several business cycles and plenty of …
Australia raises rates citing inflation pressures
The Reserve Bank of Australia announced on Wednesday 2 March that it was increasing interest rates by 25 basis points, to 5.5 per cent. It was the first shift in monetary policy by the RBA since December 2003.
Richmond Fed's Lacker on inflation targeting
In a speech on 'Inflation targeting and the conduct of monetary policy' given on 1 March, Jeffrey Lacker of the Federal Reserve Bank of Richmond said the Federal Reserve should adopt a target for US inflation, in part to keep concerns about price…
Publication of papers from ECB workshop
On 13 and 14 December 2004 the Directorate General Economics in co-operation with the Directorate General Research of the European Central Bank (ECB) held a workshop on "Monetary policy implications of heterogeneity in a currency area". The ECB published…
Zimbabwe plans new currency next year
Zimbabwe will introduce a new currency next year, phasing out bank notes introduced two years ago as a stop-gap measure to ease critical cash shortages across the country, a government daily reported on Wednesday.
EU's Almunia confident on stability pact deal soon
The European Union commissioner for economic and monetary affairs, Joaquin Almunia, said on Wednesday 2 March that he was confident agreement would be reached "soon" on the Stability and Growth Pact.
ECB's Trichet on mon. policy stability
In a speech on 'Monetary policy and private expectations' given on 25 February, Jean-Claude Trichet of the ECB said a renewed fellowship between the academic community, the markets and central banks has allowed central banks to effectively deliver the…
Museum of Australian currency notes
The Reserve Bank of Australia has opened from 1 March a Museum of Australian Currency Notes on the ground floor of its Head Office in Sydney.
Should the euro be the reserve currency?
In this article published on Sunday 27 February, Roger Bootle says that although South Korea denied speculation it is considering switching some of its reserves out of dollars and into euros, it would be startling if South Korea, and other countries,…
Fed Reserve Bank of St Louis Review, Mar/Apr 2005
The latest edition of the St Louis Fed's Review for March-April 2005 includes the article "Communication, transparency, accountability: Monetary policy in the twenty-first century" by Otmar Issing. The issue also includes a paper by Ellen Meade titled …
Norway's Gjedrem on economic perspectives
In his annual address 'Economic perspectives' given on 17 February, Svein Gjedrem of Norges Bank said Norway can gradually raise interest rates from historic lows because economic growth looks increasingly self-sustaining and stubbornly low inflation has…
BoE's Tucker on monetary policy and stability
In a speech on 'Monetary policy, stability and structural change' given on 1 March, Paul Tucker of the Bank of England said that excess demand in the UK economy was expected to boost inflation over the next few years.
Bank of Canada keeps interest rate unchanged
The Bank of Canada announced on Tuesday 1 Marchthat it is maintaining its target for the overnight rate at 2 1/2 per cent. The Bank said the outlook for the Canadian economy and inflation remained essentially unchanged since January.
China to let foreign agencies sell yuan bonds
China will allow global agencies such as the World Bank to sell yuan-denominated bonds for the first time, the People's Bank of China said in a statement on its website.
NBP's Rybinski denies rates will be slashed
A senior official from the National Bank of Poland warned markets on Monday 28 February that expectations of a sharp falls in interest rates this year were misguided.
Fed's Moskow sees job market policy challenge
Chicago Fed president Michael Moskow said on Tuesday 1 March that the US economy still has excess labour and production capacity and that oil price rises have yet to spill into underlying inflation.
Bundesbank Int'l central banking seminars 2005
The Deutsche Bundesbank has announced the programme for its international central banking seminars 2005. The seminars began in January and run throughout the year.