Inflation
Brazil c bank unlikely to change inflation target
Brazil's central bank has said it would only change its inflation target for 2003 if an increase in regulated prices surpassed its forecast of a jump of 14 percent.
MNB alters Hungary's inflation aim
The National Bank of Hungary (MNB) will miss its inflation target for this year because of increasing crude oil prices and domestic wages, MNB President Zsigmond Jarai announced Monday.
Eisuke Sakakibara: Why inflation targets wont work
INTERVIEW - Those who advocate inflation targets have not presented any convincing scenarios of how inflation targeting would cause the prices of goods and services to increase. Setting an inflation target without laying out such a scenario would be…
Mexico keeps its inflation target at 3 per cent
The Bank of Mexico on Wednesday played down the prospects of direct intervention in the foreign exchange markets to support the peso, as it unveiled a monetary policy for this year that maintains its target of 3 per cent inflation for the year.
Bank of England's model comes in for criticism
Research has cast doubt on the accuracy of forecasting models used by the Bank of England. It suggests the models forecast for inflation two years ahead was on average 0.5 percentage points too high.
Treasury Committee assess euro entry prospects
A series of hearings continued Tuesday with a distinguished panel of experts giving evidence to the UK's Treasury Select Committee on the prospects for UK euro entry. The group called for reform of the ECB with a redefined inflation target and gave a…
The Fed official who cried 'bubble'
ARTICLE - The article considers the recently released transcript of an FOMC meeting from five years ago. Jerry Jordan warns in the transcript that inflation may not be the main worry for US policy makers in the future. He apparently forewarns, "The…
Inflation target may harm economy, says Koizumi
Junichiro Koizumi, Japan's prime minister, on Wednesday appeared to back away from recent suggestions that he will appoint an inflation hawk at the Bank of Japan, saying an inflation target could harm the economy.
IMF Working Paper Series
RESEARCH - The paper 'Why Do Many Disinflations Fail? The Importance of Luck, Timing, and Political Institutions' published on 15 January considers why so many inflation stabilizations succeed only temporarily. The authors, Javier Hamann and Alessandro…
Interview with Nobuyuki Nakahara
INTERVIEW - Currently an adviser to Japan's Financial Services Agency Nobuyuki Nakahara is a favourite to land the job of governor of the Bank of Japan in March. In the interview he said the introduction of a 1-3 per cent inflation target would serve as…
Koizumi moves away from inflation target idea
More LDP members oppose plans to have the Bank of Japan set price-increase goals. Japanese Prime Minister Junichiro Koizumi is shying away from promoting inflation targets to fight falling prices amid rising calls from within the ruling party for Japan…
Dodge on the Monetary Policy Report Update
SPEECH - In his opening statement on the release of the Bank of Canada's Monetary Policy Report Update David Dodge suggested Canadian interest rates would need to rise to return inflation to the 2 per cent target over the medium term.
Hayami, Japan's inflation target a reckless gamble
Japan's central bank governor Masaru Hayami said Friday the setting of an inflation target for Japan in an attempt to stop the long slide in prices would be a "reckless gamble". The comment comes at a time when the BOJ has faced pressure from some…
Canada's Dodge warns of rising inflation
Bank of Canada governor David Dodge warned Thursday that inflation pressures are greater than expected and that the inflation rate could hit an 11-year high of 4.5 per cent this winter.
Brazil raises interest rates in surprise move
Brazil's central bank surprised financial markets yesterday with an increase of its prime lending rate by 0.5 percentage points to 25.5 per cent, showing its intention to implement tough inflation controls. Only two weeks ago central bank chief Henrique…
BOJ under pressure to target inflation
ARTICLE - As Hayami's term is about to come to an end speculation not only mounts as to his successor but whether the Bank of Japan should introduce an inflation target under the new leadership.
The governor's performance hits a new low
ARTICLE - An article published in the Jerusalem Post on Tuesday criticised Bank of Israel governor David Klein for apparently laying the blame for Israel's 6.5 percent inflation rate on the government.
Brazil targets inflation of 8.5 percent in 2003
Brazil's central bank said on Tuesday it would steer monetary policy to target a year-end inflation rate of 8.5 percent, more than double its original goal but still below market forecasts for 2003.
Bank of Israel accused of generating instability
Israel's Ministry of Finance on Thursday launched a fierce attack on the Bank of Israel, saying the central bank had failed to meet inflation targets and at times had a destabilising effect on the market.
World Bank backs Japan inflation targeting
James Wolfensohn, president of the World Bank, said on Thursday that it was sensible for Japan to use monetary policy to reverse deflation, amid debate among Japanese policymakers about the introduction of an inflation target. Outgoing BoJ governor…
UK Treasury Committee - Review inflation targeting
The UK's House of Commons Treasury Select Committee on Thursday criticised Chancellor Gordon Brown's economic policy and suggested a review of the Bank of England's inflation target.
Issing: CPI risks balanced, downside growth risks
The European Central Bank still believes euro-zone economic growth will gradually recover this year, while inflation will slowly fall back below 2%, ECB Chief Economist Otmar Issing said in a speech on Monday.
New bank chief vows to control Brazil's inflation
Henrique Meirelles, who took over as president of Brazil's central bank on Tuesday said a tight grip would be kept on inflation but said it might take longer than expected to meet current targets. He also reassured investors he would be backed by…
Call for Bank of Japan to adopt inflation target
The Japanese government will urge the Bank of Japan to adopt an inflation target, an influential member of the ruling Liberal Democratic party said Sunday. The comments follow those of Chief Cabinet Secretary Yasuo Fukuda who said last week that an…