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Inflation

Mauritius raises rates to 9.25%

The Bank of Mauritius, the country's central bank, announced on 30 June that it had raised its key repo rate by 75 basis points to 9.25% with effect from 2 July. The decision came after the third meeting of the central bank's Monetary Policy Committee …

Another rate hike in prospect in Poland

The Polish finance ministry has forecast that inflation in June will top the central bank's 2.5% target for the first time in over two years, making a rate rise more likely to ease growing price pressures in the fast-growing economy.

New Bank of Chile paper on inflation expectations

This paper studies the relationship between inflation compensation and inflation expectations in Chile. The results show that inflation-expectations movements account for about only 25% of the relative returns, indicating that premiums are a very…

Eurozone business confidence remains high

Recovery in the eurozone remains on track and economic confidence dipped only slightly this month, according to the European Commission. Inflation remained steady at 1.9% in June, within the ECB's target range, according to a separate estimate by…

Czech rates on hold, hikes to follow

The Czech central bank voted 4-1 to keep interest rates on hold at 2.75% on 28 June during its monthly policy meeting. Central bank chief Zdenek Tuma said there was every reason to increase borrowing costs, but that it had not been vital that the central…

Albanian rates up by 0.25%

Albania's central bank raised interest rates by 25 basis points to 5.75% on 28 June. The central bank's governor, Adrian Fullani, said the risk of inflation had grown stronger lately, prompting the central bank's board of directors to act.

BoE annual report

The Bank of England (BoE) published its 2007 annual report on 25 June. Highlights include a 77% rise in the bank's annual profit in the last financial year and the launch of the Adam Smith £20 note.

"Whitening effect" changes Hungary's thinking

In a surprise move the National Bank of Hungary cut its benchmark interest rate on 25 June. Rates remain the highest in the European Union, despite the 25 basis point cut which took them to 7.75%. It was the first rate change in Hungary since October…

Angola can end this year with 10% inflation: cb

The National Bank of Angola, the country's central bank, has stated its confidence that Angola can end this year with an inflation rate of 10%, while acknowledging that structural difficulties in the economy may get in the way of achieving this…

BoJ to continue gradual rate hikes

The minutes of the May 16-17 board meeting of the Bank of Japan confirmed the view of members that the central bank should continue to raise interest rates gradually, in line with growth and inflation prospects.

Gold and inflation - BoC paper

In this Bank of Canada Working Paper, the authors find that the gold price "contains significant information for future inflation for several countries, especially for those that have adopted formal inflation targets."

Riksbank's Monetary Policy Report

Published the day Sweden's central bank raised rates, the report sets out the Riksbank's thinking behind the rise and its assessment that that the repo rate will need to be around 4% at the end of the year

Sweden raises key rate - and more to come

Sveriges Riksbank, Sweden's central bank raised its benchmark interest rate on 20 June for the eighth time in 18 months, this time lifting the repurchase rate by a quarter point to 3.5%, the highest level for over four years.

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