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Interest rates

The leak in China's banking system

The People's Bank of China's surprise decision to raise interest rates for the first time in nine years on 28 October prompted much speculation on the reason for the move. Some commentators said it marks the beginning of a liberalized interest-rate…

Interview with Philadelphia Fed's Santomero

In an interview published last Friday, 22 October, Philadelphia Fed President Anthony Santomero said that the Federal Reserve will be able to slow down the pace of interest rate rises if the economy grows less rapidly than it expects.

How Reserve Bank of Fiji conducts monetary policy

This article outlines how the conduct of monetary policy in Fiji is transmitted from the Reserve Bank of Fiji's (RBF) policy indicator rate (PIR) through to interest rates in the economy and finally to economic activity and its impact on inflation and…

Bank of England MPC Minutes, 6&7 October

The minutes from the 6 and 7 October meeting of the Monetary Policy Committee of the Bank of England were released on 20 October. All nine MPC members voted to keep interest rates unchanged at 4.75 percent this month, while there seemed to be no…

Asian central banks should follow S Korea's lead

The more Asian central banks try to convince the markets that their judgment on interest rates isn't clouded by political interference, the less anyone believes them, this article says. It suggests policy makers from Jakarta and Manila to Bangkok and…

Federal Reserve raises US rates

The Federal Open Market Committee decided on Tuesday 21 September to raise its target for the federal funds rate by 25 basis points to 1-3/4 percent. In its press release the FOMC said despite the rise in energy prices, inflation and inflation…

Norges Bank keeps interest rates unchanged

Norges Bank's Executive Board decided on Wednesday 23 September to leave interest rates unchanged. Norges Bank's key interest rate, the sight deposit rate, therefore remains at 1.75 per cent. The overnight lending rate also remains unchanged.

Bank of England voted 9-0 to hold rates in Sept

The Bank of England said on Wednesday 22 September that it voted 9-0 to hold rates at 4.75 per cent in its 8 and 9 September MPC meeting. The Bank noted that recent labour market data was "surprisingly weak," though inflationary pressures were still…

Brazil hikes interest rates to 16.25%

Brazil's central bank interest rate setting Copom committee increased interest rates on Wednesday 15 September for the first time since February 2003, saying that it hoped to rein in inflation without disrupting the country's economic recovery.

China eyes capital market reforms

China has succeeded in curbing investment and credit growth, and the priority now is to free up interest rates, People's Bank of China deputy governor Li Ruogu said in remarks that may signal long-awaited capital market reforms are drawing nearer.

Former RBA chief criticises PM on rates

Former Reserve Bank of Australia governor Bernie Fraser said in an interview he expects interest rates to rise straight after the election, partly because of what he sees as the lax budgetary policies of the Howard government.

Bank of Canada raises interest rates 0.25%

The Bank of Canada announced on Wednesday 8 September that it would raise its key overnight interest rate by one-quarter of a percentage point to 2.25 per cent, a move widely expected by financial markets. In a press release the bank said with the…

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