Inflation
Former RBA governor calls for inflation re-think
Bernie Fraser, a former governor of the Reserve Bank of Australia (RBA), says the central bank might have to re-think its use of interest rates to combat inflation if food and fuel prices continue to rise.
Mboweni on the crunch
Tito Mboweni, the governor of the South African Reserve Bank, said "the fact that we have not had to be concerned about liquidity and financial stability issues has allowed the Bank to continue focussing on its objective of bringing inflation back to…
IMF urges central bankers to hike rates
Policymakers would be better off reacting to the recent surge in commodity prices by raising rates, new research published by the International Monetary Fund states.
Fed minutes reveal some reluctance to cut rates
Most members of the Federal Open Market Committee viewed the decision to cut rates by a quarter point in April as a close call, the minutes of the meeting reveal.
Inflation targeting a dangerous fad, says Stiglitz
Joseph Stiglitz, the Nobel Prize-winning economist and Columbia University professor, has panned inflation targeting as a "fad" that could lead to economic disaster.
Discomfort over inflation led RBA to hold
Despite signs that domestic demand is weakening, Reserve Bank of Australia opted to leave rates at a 12-year high of 7.25% in May on the back of "uncomfortably high" inflation figures.
We must avoid the errors of the 70s: Trichet
Jean-Claude Trichet, the president of the European Central Bank (ECB), has warned that the world's central bankers risk a return to the dark days of the 1970s if they cut rates in the current climate.
Ghana raises rates by 175bp
The Bank of Ghana has hiked its benchmark interest rate to 16% on the back of soaring inflation.
Core inflation no better than other measures
New research published by the Philadelphia Federal Reserve dismisses claims that core inflation is a better predictor of total inflation.
Fed's Pianalto defines inflation
Sandra Pianalto, the president of the Cleveland Federal Reserve, has clarified the difference between relative-price pressures and inflation.
Issue of rising food prices needs reflection
The recent surge in food prices requires careful consideration not knee-jerk reactions, Norbert Walter, the chief economist for Deutsche Bank Group, notes.
Russia’s monetary dilemma
Time is running out for Russia to deal with its “problem of success”. There are three possible ways forward, writes Bill Allen
King readies pen as BoE predicts prices to soar
Mervyn King acknowledged on Wednesday that he would almost certainly need to write at least one letter to the British chancellor in the coming months explaining why inflation is more than a percentage point above the Bank of England's target.
Inflation surge surprises UK economists
Consumer price inflation in the UK soared to 3% in April, reducing the already-slim chances of a June rate cut to practically nil.
Probability of June rate cut falls on UK data
The chances of the Bank of England's Monetary Policy Committee (MPC) opting to cut rates next month looked slim after data out Monday showed producer price inflation (PPI) shot up in April.
Price instability demands attention: IMF's Lipsky
Central bankers must monitor the recent wave of inflation, which threatens to undermine prospects for restoring the favourable economic climate of recent years, John Lipsky, the International Monetary Fund's first deputy managing director, warned.
Turkey to review inflation target
The Central Bank of Turkey will consider revising its inflation target towards the end of this year, the minutes of its April rate-setting meeting show.
OECD inflation hits 3.5%
CPI inflation in the 30 member economies of the Organisation of Economic Co-operation and Development (OECD) rose to 3.5% in the year to March, up from 3.4% the previous month.
Sri Lanka reacts as inflation hits record high
The Central Bank of Sri Lanka has lowered its reserve money targets in a bid to curb rampant inflation which soared to an all-time high in the year to April.
Interest rate gap too large, says France
Christine Lagarde, the French minister of finance, has issued a guarded warning to the European Central Bank (ECB) not to raise rates.
Reserve accumulation and price commitment
A new paper published by the International Monetary Fund finds that foreign-exchange interventions and a rapid accumulation of reserves can damage the anti-inflationary credibility of the monetary authority.
Russian central bank hints at broad tightening
Alexei Ulyukayev, the first deputy chairman of Russia's central bank, suggested on 22 April that monetary conditions may be tightened in the near future using a range of policy tools.
New Zealand softens stance
The Reserve Bank of New Zealand kept rates on hold for the eighth-straight month on Thursday but signalled it may cut in the second half of 2008.
SA inflation surpasses 10% mark
South African inflation surged to its highest level since December 2002 last month, heightening the need for the country's central bank to act against political opposition and raise rates further.