Inflation
MNB vice president Auth warns against wage index
Inflationary pressures could build up in the Hungarian economy if next year's wage rises are linked to planned tax changes, warned the vice president of the national bank of Hungary Henrik Auth in an interview with Reuters.
Fed can keep rates low as growth quickens - McTeer
In a speech to the Dallas Rotary Club, Reuters reports that Dallas Fed President Bob McTeer expressed optimism the economy would soon revive, even as he admitted a lack of "hard evidence" of a pickup.
ECB's Issing - No risk of inflation or deflation
Neither deflation nor inflation present risks for the eurozone economy at the moment. That was the assessment of Otmar Issing on Wednesday 23 July, according to Reuters, but if deflationary concerns emerge the ECB is ready to take various preventive…
Bernanke: Fed could cut rates to zero
In his speech to a University audience on Wednesday 23 July, Reuters reports that Ben Bernanke declared that the Federal Reserve was ready to keep short-term interest rates low indefinitely - even cutting them to zero - to jumpstart the economy and ward…
Ueda on Japan's deflation and policy response
In a speech on 'Japan's Deflation and Policy Response' Kazuo Ueda of the Bank of Japan said the deflation of general prices has not been the major problem in Japan. Instead, asset price deflation and its interaction with the financial system and the…
Greenspan proves fallible
An article in American Outlook Today, "Greenspan proves fallible", describes the pedestal upon which Alan Greenspan has been perched as "a bit shaky" saying he disappointed the expectations of the bond market with the FOMC's with only a quarter point…
'Stars are aligned' for U.S. economy- Fed's McTeer
Dallas Fed chief Bob McTeer said on Tuesday 22 July that factors are in place to see a recovery in the US economy and non-inflationary growth could be as much as 5 percent, according to Reuters. "I think all the stars are aligned for the economy to pick…
Fed's Bernanke - An Unwelcome Fall in Inflation?
In the speech 'An Unwelcome Fall in Inflation?' given on 23 July Ben Bernanke of the Federal Reserve said in a world in which inflation risks are no longer one-sided, and short-term nominal interest rates are at historical lows, the success of monetary…
BoJ willing to take risks to fight deflation
Giving a lecture in Tokyo on Wednesday 23 July, Bank of Japan governor Toshihiko Fukui signalled a willingness to fight Japan's economic slump made worse by deflation. Associated Press reports that Fukui said the BoJ "is willing to take unlimited risks…
UK inflation shows surprise fall
The UK inflation rate fell to 2.8% on Tuesday, moving closer towards the Bank of England's 2.5% target, according to Reuters. Most analysts had predicted an increase to 3.0%.
UK economy 'in uncharted territory'
Giving evidence before the UK parliament's treasury select committee on Tuesday new Bank of England governor Mervyn King said he had "no idea" if 3.5 per cent was exactly the right level for UK interest rates. Rachel Lomax also appeared before the…
'Absurd criteria for new EU members'
An article in the Financial Times says that, fortunately, such a disastrous scenario as a deflationary spiral in the eurozone is unlikely. But that is not true of the problems that low or negative inflation within the eurozone could pose for the…
IMF Paper: Inflation and central bank independence
The IMF Working Paper "Inflation Performance and Constitutional Central Bank Independence: Evidence From Latin America and the Caribbean" explores the relationship between the constitutional entrenchment of central bank independence and inflation…
Norges Bank Inflation Report, June 2003
Norway's central bank, Norges Bank, has published its latest Inflation Report for June 2003. The report contains a review of developments in the Norwegian economy and other factors that influence the inflation outlook.
Fedspeak with the Fed rate cut
An article in the Washington Times suggests that to understand what the Federal Reserve does, it's best to start with reasonably low expectations about what any central bank can do. It also suggests that the Fed's "balance of risk" assessment of the…
Putin, central bank chairman discuss economy
Chairman of the central bank of Russia Sergey Ignatyev met with President Vladimir Putin on Monday 30 June to discuss the financial and economic situation in the country, RTR Russia TV reported. Ignatyev said the macroeconomic situation remains stable,…
Farewell Eddie
Sir Edward George retired from the Bank of England on Monday. An article in the Financial Times looks back at his time as governor which, it says, can be looked on a successful decade which will not see him move rapidly from Who's Who to Who's He?
Mexico on track for 3% inflation in 2003 - c bank
The governor of Mexico's central bank, Guillermo Ortiz, is reported by Reuters to have said that the trend in inflation for the first two weeks of June suggests the country is going to be in the range of its targets for this year.
RBNZ's New Zealand CPI Inflation Calculator
The Reserve Bank of New Zealand has created a way by which you can easily work out what something which, for example, your grandparents bought for 2 pounds back in 1935 would cost today. It's "The New Zealand CPI Inflation Calculator". A quick check…
BofE's George shrugs off fears of deflation
In an appearance before the Treasury select committee on Tuesday outgoing governor of the Bank of England Edward George said there was an "extremely" low risk of deflation in the UK and the US, acording to the Independent newspaper. He described the risk…
Brazil adjusts inflation target upwards to 5.5%
Brazil revised its inflation target up on Tuesday 24 June to 5.5 per cent, reports Merco Press. The 2005 target was fixed at 4.5 per cent. Making the announcement, Brazilian Finance Minister Antonio Palocci emphasized that the government will keep…
BoJ Monetary Policy minutes, 30 April
Minutes of the Bank of Japan's Monetary Policy Meeting on 30 April 2003, released 16 June. The minutes showed at least two of the BoJ's nine policy board members favour the introduction of a "reference rate of inflation" to halt deflation.
Brazil may raise inflation target
Economists have said that Brazil is likely to raise its inflation target to a more realistic level which could allow the central bank more room to reduce interest rates, according to a report by Bloomberg.
Bank of England Inflation Attitudes Survey, May 03
The Bank of England's May 2003 quarterly Inflation Attitudes Survey was published on 20 June. Asked for their expectations of inflation over the coming year, respondents gave the same median answer as for perceptions of current inflation: 2.0%. This is…