News/Monetary Policy
BSP chief sees November inflation at 5%-5.5%
November inflation is expected to come in at between 5% and 5.5% due to a weaker peso, the Bangko Sentral Philippines yesterday said.
Bank of England warns on tax cuts
The Bank of England, the UK central bank, has warned that it is premature to rule out further interest rate rises and threatened an immediate response if the government makes big pre-election tax cuts.
Venezuela cenbank director sees boom on horizon
Venezuela is "on the edge of an economic boom," predicts central bank director Armando Leon.
El Salvador move to dollars seen risky but viable
El Salvador must keep a tight rein on government spending to succeed with a controversial plan to introduce the US dollar into general use and jump-start its economy, economic analysts say.
ECB to mull raising M3 target to 5%
Bundesbank President Ernst Welteke said on Tuesday that the European Central Bank would discuss raising the reference value for M3 monetary growth to 5% from 4.5% at its December 14 meeting.
Riksbank says rate hike will come sooner or later
Villy Bergstroem, deputy governor of Sweden's central bank, the Riksbank, Tuesday reiterated earlier Riksbank statements that an interest rate hike will come sooner or later.
Euro more likely to recover than weaken-BoE's King
Europe's single currency was more likely to recover against other key currencies than to fall further, Mervyn King, deputy governor of the Bank of England, said on Tuesday.
Central Bank of Nigeria slashes minimum rediscount
For the third time this year, the Central Bank of Nigeria has slashed the minimum rediscount rate from 16% to 14%, in a bid to encourage banks to reduce their lending rates.
Iran growth rate at 5%, says central bank
Iran's central bank governor said the economic growth rate stood at 5% in the current Iranian year, state radio reported on Tuesday.
Guatemala moves towards opening up greenback use
Guatemala's ruling Republican Front (FRG) on Tuesday presented a bill to Congress proposing the liberalisation of the country's foreign exchange markets, as the first step toward dollarising the Central American economy.
BOE: Joining euro means return to tax and spend
Sir Eddie George, the governor of the Bank of England, said that the government would have to rely more on taxation and spending policy to control the economy if Britain joined the euro.
Bank of Japan can learn from Sweden on inflation
In a letter to the editor in Financial Times today, Professor Lars Jonung argues that the Bank of Japan can learn from the Riksbank in adopting a zero inflation target.
Stiffer tests for future Eurozone members -Welteke
Ernst Welteke, president of the Bundesbank, has raised concerns about whether the countries preparing to join the European Union in the next few years would be ready to become members of the EU's single currency.
IMF says Turkey policy on track
The International Monetary Fund said in a statement released on its website that the Turkish government's IMF-supported economic programme was on track and is expected to remain so.
Hungary's lower reserve rate seen positive
The National Bank of Hungary said it would cut its effective mandatory reserve rate to 7% from 11% as of 1 February. Analysts said that this would improve the competitiveness of the banking sector, boost growth and stimulate investment.
Bank of Israel cuts key rate 0.2% for December
The Bank of Israel said on Monday it would reduce its key lending rate by 0.2% point to 8.2% effective December 1, the eleventh rate cut in a year.
Polish MPC hits at budget, rate outlook unclear
Poland's monetary policy council raised doubts on Monday about its readiness to cut interest rates next year, when it said the government's plan for cutting the budget deficit relied on "unrealistic" targets.
Pakistan cenbank appoints seven primary dealers
Pakistan's central bank on Monday appointed seven banks as primary money market dealers for the government securities, five months after it announced plans for the new system.
New Czech central banker says sees no big changes
Incoming Czech central bank governor Zdenek Tuma does not expect to make any big changes when he takes over the CNB this week, the daily Mlada Fronta reported.
Sri Lankan economy records moderate growth
Sri Lanka's economy has recorded a moderate growth of some 4.5% during the first nine months of this year, according to the island country's central bank.
Kenya banks try to head off interest rate controls
Kenya's commercial banks have offered to reduce interest rates on their loans in a move aimed at persuading parliament not to introduce tight controls on lending rates.
Issing says uncertainty over US economic outlook
European Central Bank member Otmar Issing said investors have become more cautious on the outlook for the dollar and that the U.S. economy is slowing faster than Europe's, an Italian financial paper reported on Saturday.
Euro weakness must be seen in context - Schioppa
European Central Bank council member Tommaso Padoa-Schioppa on Saturday said that the euro's current weakness needed to be judged in light of historical exaggerations in currency swings.
Greek banks to meet ECB reserve regulations
The Bank of Greece said on Friday that effective from 1 January 2001 Greek banks will have to meet European Central Bank regulations on their required reserves.