Interest rates
SARB cuts interest rate by one percentage point
Tito Mboweni, South African Reserve Bank governor, said the committee had to strike a "careful balance" in determining monetary policy, according to allafrica.com, as he explained yesterday's one percentage point cut in interest rates.
Bank of England cuts inflation forecast
The Bank of England's inflation report published on Wednesday 13 August showed that the Bank expects inflation to dip below the 2.5 percent target for most of 2004, after reaching 3 percent in April, Bloomberg reports.
Norway's central bank reduces interest rates
Norges Bank reduced interest rates on Wednesday 13 August by 1 percent to 3 percent, according to a report by Afterposten. This was the sixth time this year that Norway's central bank lowered interest rates.
Bank of Japan keeps monetary policy steady
After buoyant economic data suggested that the Japanese economy's problems may be easing, the Bank of Japan decided to keep monetary policy unchanged at its Friday meeting, according to Associated Press.
ECB optimistic on euro zone recovery
The ECB said on Thursday 7 August that the latest economic data confirm that interest rates are appropriate, according to Reuters, because the outlook for price stability remains favourable and there is increasing reason to expect that economic activity…
RBA keeps interest rates unchanged at 4.75%
The Reserve Bank of Australia keep interest rates unchanged on Wednesday 6 August for the 14th month running, according to Bloomberg. RBA governor Ian Macfarlane said in June he was prepared to lower interest rates unless global demand recovers.
ECB expected to rest with rates on hold
The European Central bank is expected to hold interest rates steady when it meets on Thursday 31 July, according to AFP, but analysts said on Tuesday 29 July it will probably cut in September when it returns, to stimulate the euro zone economy further.
When great minds should not think alike
Committees are not necessarily the best recipe for good policy outcomes, this article in the Financial Times suggests. After Rachel Lomax joined the Bank of England's Monetary Policy Committee and immediately ruffled some feathers by dissenting from the…
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…
Rachel Lomax and a new era for the MPC
Rachel Lomax's first Monetary Policy Meeting at the Bank of England may have labelled her a hawk for good from day one at the office. An article published by Dow Jones suggests her reluctance to vote for a rate cut when growth is weak may signal distinct…
Bank of England MPC Minutes 9/10 July 2003
Minutes of the Bank of England's Monetary Policy Committee Meeting were released on 23 July for the meeting of 9 and 10 July 2003. The MPC acknowledged that it now seemed likely that UK growth in 2003 Q2 had been weaker than the Committee had assumed in…
ECB's Welteke sees no reason to cut rates
In a television interview European Central Bank council member Ernst Welteke said "I see no need to act at the moment" on interest rates, theoretically we have room for manoeuvre", according to Bloomberg. He also said "there are a few signs of…
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…
Duisenberg silences ECB rate cut talk
Wim Duisenberg put the onus on national governments to stimulate growth on Thursday 3 July, according to Reuters, telling the European parliament that governments can no longer hide behind the ECB to cover up their failure to enact urgently required…
''The Fed has not avoided danger''
An article in the Financial Times argues that the Federal Reserve's decision to cut interest rates last week was a missed opportunity. Quantitative easing through an expansion of the money supply is needed, it argues, or the economic recovery could be…
ECB won't follow Fed on rates - Duisenberg
Speaking on German TV, Wim Duisenberg said euro zone interest rates were currently appropriate, Reuters reports, and that the ECB would not follow the lead of the US Federal Reserve by cutting interest rates soon.
Minutes show some on FOMC wanted rate cut in May
Minutes from the Fed's May 6 policy meeting, reported by the Washington Post, showed that members would not wait indefinitely for the clouds to clear before lowering rates again in response to falling inflation rates and sluggish economic growth. The…
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.
ECBs Solans says uncertainties cloud rates outlook
In an interview with the Financial Times, Eugenio Domingo Solans of the ECB said the current level of interest rates in the eurozone was favourable for a recovery. But the situation would be reassessed at the next meeting as the outlook was still clouded…
Inflation expectations crucial - SARB
The South African Reserve Bank suggested in its June quarterly bulletin that it expected inflation to hit its target later this year but it would largely depend on the extent to which price expectations conformed to trends, according to a report by…
MPC recruit Lambert urges UK Treasury drop secrecy
The most recent member of the Bank of England's monetary policy committee called for openness and transparency in the selection process of appointees to the MPC when facing the Treasury select committee on Monday 16 June, according to a report by the…
ECB officials give conflicting signals on rate cut
Speaking separately this week two ECB Governing Council members gave conflicting views on what a fall in inflation below the ECB's 2 per cent target would mean for interest rates, according to Bloomberg report.
Duisenberg dashes hopes of ECB rate cut
Wim Duisenberg has said more is needed to rebuild consumer and business confidence than another rate cut, according to Business & Finance. He also said there was no serious danger of deflation in either Germany or the eurozone.
Fed's Poole: Central bank can be patient
St Louis Fed chief William Poole was reported by Reuters to hacve said hat even though the Federal Reserve is under some pressure to make further cuts in interest rates, markets will automatically compensate by discounting longer term rates taking some…