Central Banking
Argentina, IMF seen close to loan deal
Argentina and the International Monetary Fund have made progress in negotiations over the preliminary three-year debt rescheduling agreement, Economy Minister Roberto Lavagna told reporters on Monday Reuters said.
UK inflation rises unexpectedly in July
UK inflation rose to 2.9% in July the National Statistics office said Tuesday according to BizWorld. "The largest upward influence came from clothing and footwear, particularly women's outerwear. This year's summer sales for clothing were not as great as…
Fed expected to keep rates steady at 45-year low
The Federal Reserve is expected to hold short-term interest rates steady when it meets Tuesday USA Today reported, amid recent signs - including faster productivity growth and rising factory orders - that the economy is beginning to accelerate at a…
BOJ sets up panel to check accuracy of statistics
The Bank of Japan is to set up a committee to examine the central bank's statistics for accuracy, Japan Today said. The BOJ acknowledged July 25 that its monthly data on the outstanding balance of CP underwritten by banks were incorrect and would be…
Russian and Mongolian central banks sign agreement
The central banks of Russia and Mongolia have signed an agreement on the settlement of accounts in foreign economic relations between the two countries, Gateway2Russia reported.
Contrasting perspectives on deflation
For this weeks CentralBankNet Special Feature we present a variety of views on the threat of deflation. The well known phrase from former Fed Chairman William McChesney Martin that the job of central bankers is "to take away the punch bowl just when the…
Mboweni on Empowerment and the S African economy
In a speech on 'Empowerment and the South African Economy' given on 6 August Tito Mboweni of the South African Reserve Bank said that it is correct to say that ultimately the functions of the Reserve Bank are to make a contribution towards an environment…
Central Bank of Chile - Annual Report 2002
The Central Bank of Chile has published its Annual Report for the year ended 2002. In 2002 the Central Bank continued to analyse and interact with the financial system to modernize the national payments system, developing a draft real time gross…
RBA Statement on Monetary Policy, August 2003
The Reserve Bank of Australia released its August 2003 Statement on Monetary Policy on 11 August. While the Australian economy remains in a position to perform relatively well against a weak international background, the pace of growth of the non-farm…
Norwegian July inflation drop fuels rate cut hopes
Prices fell 0.4% in Norway in the month to July, according to a report by AFP. The drop in inflation fuelled expectations of an interest cut when Norges Bank meets on Wednesday 13 August.
IMF warns Netherlands of risks to a recovery
The IMF has warned that substantial risks remained to economic recovery in the Netherlands, according to a report by Reuters. It forecast the economy could pick up from later this year and grow 1.4 percent in 2004.
Italian economy dips into recession
The Italian statistics agency Istat said gross domestic product in the euro zone's third-largest economy shrank for the second quarter in a row, putting Italy into a recession, according to Reuters.
Argentina's Lavagna sees draft IMF deal this week
Speaking last week on the three-year loan pact to replace a $6.8 billion IMF emergency agreement that expires on 31 August, Argentine Economy Minister Roberto Lavagna told reporters "The IMF is now working in Buenos Aires and probably we'll have…
Undue pessimism is driving the eurozone recession
This article by Paul De Grauwe in the Financial Times says that the ECB was wrong to blame the eurozone recession on structural factors and scold eurozone politicians for doing nothing to liberalise labour markets and modernise welfare systems. "It is…
Central bank transparency - As clear as mud
Being open and being predictable are rather different things, this article in The Economist finds. Using statistics from polls conducted before central banks' policy meetings it says that the Fed's interest rate changes are the most predictable at 95%,…
Basel II 'could damage capital market liquidity'
The Securities Industry Association, which represents many of the world's largest securities firms, has written to the Basel committee warning that new rules "could have a detrimental impact on the liquidity of the capital markets", according to a report…
Bank of Japan sees 'virtually flat' economy
The Bank of Japan's August monthly report published on Monday 11 August said "economic activity remains virtually flat", according to Reuters, and on job conditions it said the situation remained tough although the number of people in work had stopped…
Swedes to reject euro, Nordea forecasts
Economists at Nordea have changed their forecast for the first time, according to Bloomberg, and now say Sweden will vote no in the 14 September euro referendum.
Zimbabwe gov't bans cash 'hoarding'
Zimbabwe's President Robert Mugabe passed a law last week banning the hoarding of bank notes, according to a report by Reuters. The law bypassed parliament and one economist said he was "mystified" about how it would be applied.
Major shake-up looming at Reserve Bank of Zimbabwe
The cash crisis in Zimbabwe is likely to result in a reshuffle in the next few weeks at the country's central bank, according to a report by the Zimbabwe Independent. It is understood the shake-up comes with the full blessing of President Robert Mugabe…
Slovenia not ready to join EU says France Arhar
Former governor of the central bank of Slovenia, France Arhar, said in an interview reported by the STA News Agency thathe didn't think Slovenia was ready to join the EU yet. If Slovenia wishes to catch up with the EU within ten years, its minimum growth…
Jordan c b unveils banking supervision plans
The Central Bank of Jordan plans to develop its banking supervision measures to include an early warning system and early corrective procedures, according to the Jordan Times. The system is based on examining certain criteria such as capital adequacy,…
The Bank of Thailand's 'Young Guns'
They're fresh, well-educated and thrilled to be serving their country, they are the Young Guns at the Bank of Thailand. This article in the Bangkok Post takes a look at the "new blood" of economists at the Bank of Thailand, who say that unlike an…
Who will be the banker bet?
This article in the Financial Times looks at the current crop of top central bankers and asks who will secure their place in history as a trustworthy custodian of the economy? Timing is everything, and while Alan Greenspan would have been a "no contest"…