Interest rates

Comment: A new era for the BoJ

As expected the Bank of Japan raised interest rates for the first time since March 2001 at its monetary policy meeting on 14 July. The decision to end the zero interest rate policy (ZIRP) with a 25 basis point hike in the overnight rate was unanimous one.

Bank of Canada keeps rates unchanged

The Bank of Canada left interest rates unchanged at 4.25% on Tuesday 11 July and repeated a May statement that the seven prior increases are enough to return inflation to its 2 percent goal.

Kohn with reflections on globalization & policies

In the speech 'Reflections on globalization and policies' given on 6 July Donald Kohn of the Federal Reserve said he was aware of the risk of raising rates more than necessary but saw a need for higher global interest rates to maintain stability.

Comment: The ECB's gamble

The president of the ECB, Jean-Claude Trichet, has announced that the central bank will take the highly unusually step of meeting in person on 3 August, rather than conduct the scheduled conference call. In doing so, Trichet has effectively pre-announced…

Comment: All eyes on Trichet

All but two of the 43 economists polled by Bloomberg recently expect the European Central Bank (ECB) to keep interest rates at 2.75% this week. All eyes will, however, be on the central bank's president, Jean-Claude Trichet, to see if he alludes to the…

When facts change, central bank intentions should

According to this article published by the Financial Times on Wednesday 28 June, by Francesco Giavazzi and Charles Wyplosz, the Bank of England, which once pioneered transparency and innovative communication, is trailing behind other central banks.

Comment: When 364 economists were wrong

It is rare to find two economists who can agree on anything, but in 1981 no less than 364 British economists agreed to write an open letter condemning the tightness of that year's budget. Amongst them: a certain Mervyn King.

Comment: Bold CBT holds its breath

After another emergency meeting over the weekend the Central Bank of Turkey has raised interest rates by 225 basis points (bp). This has taken interest rates to 17.25%, following an initial hike of 175 bp earlier this month. Will this bold move make any…

Study says markets on Fed's wavelength

According to a recent study by the Federal Reserve Bank of Cleveland, better communication by the U.S. central bank has dramatically cut mistakes by markets betting on future interest rate moves.

BOJ's Nishimura sees low rates problem

Keeping Japan's interest rates at low levels for a prolonged period may cause excessive investment by companies and overstimulate economic growth, according to Kiyohiko Nishimura, a Bank of Japan policy maker.

ECB's Trichet on economic and monetary issues

In the testimony given on 21 June Jean-Claude Trichet of the ECB said the insight that price stability is the primary goal for monetary policy has also been translated into the mandates of central banks of advanced economies and also of a very large…