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Interest rates

Reserve Management in an Era of Low Returns

RESEARCH - Although central banks have traditionally conducted their reserves management in a conservative and risk-averse way, the very low interest rates we see now have caused central banks, like other fixed income investors, to search for higher…

Reserve Bank of New Zealand Press Release

PRESS RELEASE - The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5.75 per cent. In addition, the Bank's projections show no change in short-term interest rates over the period ahead - reflecting the Bank's sense that the risks…

Central bankers do it their way

ARTICLE - It is as well that central bank actions are not co-ordinated. The US Federal Reserve has a clear bias towards stimulus and preventive action, as its half-point cut in interest rates this week shows.

ECB Press Release

PRESS RELEASE - At today's meeting the Governing Council of the ECB decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 3.25%, 4.25…

RBA holds interest rates steady again

AUSTRALIA - The Reserve Bank of Australia, in a widely anticipated response to a worsening global economy and the growing impact of the drought, announced on Wednesday that it had decided to leave interest rates on hold for a fifth month.

The Fed should cut next week

ARTICLE - The US economy is growing around trend, unemployment is at its lowest post-recession peak for decades, the housing market is firing on all cylinders - and the financial markets are expecting the Federal Reserve to cut interest rates to a 40…

ECB Working Paper Series

RESEARCH - 'Monetary policy and the zero bound to interest rates: a review', by Tony Yates, October 2002. The paper reviews the literature on what the zero bound to nominal interest rates implies for the conduct of monetary policy. A situation familiar…

Brazil central bank raises interest rates to 21%

BRAZIL - Brazil's central bank yesterday sought to stave off a growing financial crisis by raising overnight interest rates by 3 percentage points to 21 per cent. The increase followed renewed pressure on the Real, the country's currency, before a likely…

SARB Monetary Policy Review - October 2002

REPORT - The South African Reserve Bank has published its October Monetary Policy Review. The report reflects on increased inflationary pressures in the South African economy following the depreceiation of the rand in the latter half of 2001.

IMF's Kohler calls for ECB rate cut

EUROPE - International Monetary Fund Managing Director Horst Koehler said the European Central Bank should cut interest rates soon to help boost the economy.Koehler said he believes a drop in rates would stimulate growth, adding that central bankers must…

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