Interest rates
Economic recovery has started in Eurozone: Trichet
The ECB left interest rates unchanged on Thursday 4 Decemberat its last meeting scheduled for this year, reports AFP. Speaking at a press conference following the meeting of the ECB rate-setting council, President Jean-Claude Trichet said economic…
BoE likely to pause after recent rate rise
The Bank of England is expected to leave interest rates unchanged on Thursday 4 December, AFP reports, after raising them last month. The Bank's Monetary Policy Committee began its two- day meeting on Wednesday 3 December.
Reserve Bank of Australia lifts interest rate
Australia's Reserve Bank has again raised official interest rates, according to ABC Australia Radio News, taking them to their highest level in more than two and a half years. The RBA said in a statement released on Wednesday 3 December that the domestic…
Bank of Canada keeps rate at 2 3/4 per cent
The Bank of Canada held its main interest rate steady at a meeting on Tuesday 2 December, despite market worries over the impact of a soaring Canadian dollar and recent weaker-than-forecast economic growth.
Brazil's central bank hint need for more rate cuts
Minutes released by the central bank of Brazil from its monetary policy meeting, reported by AE Brazil, hint that interest rates may need to fall further as projected inflation for the next 12 months and 2004 remain below target.
OECD sees scope for ECB rate cut
The OECD's semiannual economic outlook report said that with inflation pressures waning it is assumed the ECB will hold interest rates until the recovery firms, reports AFP, but there is scope for easing policy if the economic upturn stalls or the euro…
Bundesbank's Welteke on reforming Europe
In the speech 'Reforming Europe' given on 21 November, Ernst Welteke of the Deutsche Bundesbank said at present, low interest rates and ample liquidity are highly conducive to growth in the euro area. In the ECB Governing Council, Welteke stressed, we…
Bank of England's Bean hints at higher rates
Bank of England chief economist Charles Bean said on Monday 24 November that UK interest rates remained "simulative", according to Bloomberg News, but that increases may be required if "If growth stays above the U.K.'s trend rate for any significant…
Fed's Poole says not worried on money supply drop
William Poole, President of the St Louis Fed, said on Friday 21 November that "If something happens that calls for policy to change then policy will change,", but until then interest rates would at their current record low levels, Reuters reports.
Fed's Ferguson hints no U.S. rate hike soon
Federal Reserve Vice-Chairman Roger Ferguson said in remarks to the Executives' Club of Chicago on Friday 21 November, and reported by Reuters, "Although the recovery now appears to have turned the corner, much additional progress remains to be made…
Fed's Stern sees no pick-up in inflation
Minneapolis Fed President Gary Stern said on Friday 21 November that if US inflation remains low, which he thinks it will, interest rates can also remain low, according to a Reuters report. "I don't expect to see any material acceleration of inflation…
Canada's Dodge will cut rates if necessary
David Dodge said on Thursday 20 November that interest rates would be cut if the Canadian dollar's rise threatened the economy, according to the Globe and Mail. He said the Bank of Canada would act to stimulate domestic demand to return inflation to the…
Brazil makes unexpected cut to base rate
The central bank of Brazil's Copom monetary policy committee has cut its main interest rate to by 1.5 per cent, according to AFX. The Copom said in a statement that the decision to cut the selic to 17.5 pct, with no bias, was based on its positive…
BoE's King explains reasons for rate rise
Appearing before the Treasury Select Committee on Thursday 20 November, Mervyn King, governor of the Bank of England gave the reasons for this month's 25 basis point rise in interest rates - the first in nearly four years. A combination of positive…
Fed's Parry-US economy has room for strong growth
Speaking on Tuesday 18 November, , San Francisco Fed chief Robert Parry said US interest rates could remain at 1 percent for "a while longer" and that there is room for some pretty strong growth before inflationary pressures become a concern.
Debt reduction could impact on UK rates
Andrew Large said on Monday 17 November that if personal debt was reduced in the UK it could have an impact on interest rates, Reuters reports. In a speech to the City of London Central Banking Conference the Bank of England's Deputy Governor for…
Bundesbank warns eurozone rates may rise soon
The Bundesbank said in its November monthly report, released on Monday 17 November, that the ECB "could" be forced to raise interest rates as "It will be more difficult for monetary policy to guarantee price stability with low interest rates" with some…
Fed's Santomero says rates can't stay low forever
Philadelphia Fed President Anthony Santomero said on Friday 14 November that although interest rates cannot stay at their current low rates in the indefinitely, there is no pressure for a rise in the near future, according to a report by Reuters…
IMF: Interest rates in low rate environment
This IMF Working Paper empirically evaluates the validity of the term structure of interest rates in a low-interest-rate environment. It applies a time-series method to high-frequency Japanese data, the term-structure model is found to be useful for…
Trichet rings in new era at ECB with rates on hold
The ECB left its main refinancing rate steady at 2 percent at its 6 November meeting with Jean-Claude Trichet attending his first meeting as president of the euro-zone central bank, AFP reported.
A mangled message from the Federal Reserve
The Federal Reserve's FOMC committee meets on Tuesday 28 October to decide interest rates. The accompanying statement with their decision, this article in the Financial Times says, is now so central to markets' interpretation of the Fed's intentions that…
RBNZ leaves rates unchanged
The Reserve Bank of New Zealand left interest rates unchanged at 5 per cent on Thursday 23 October. "As noted in our September monetary policy statement, the New Zealand economy has been enjoying strong economic growth, with robust domestic demand…
Minutes show BoE came close to rate increase
Minutes from the Bank of England's October Monetary Policy Committee meeting published on Wednesday 22 October showed four of the nine members, including deputy governor Andrew Large, voted for an increase in interest rates, according to Reuters. The…
Israel central bank's Klein to continue rate cuts
Bank of Israel Governor David Klein said on Satueday 18 October that he would continue to cut interest rates for as long as prices and financial markets remained stable, according to a report by Reuters.