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Czech house wants cbank aim cut from constitution

The lower house of the Czech parliament agreed on Jan. 26, 2001, to cut the central bank's policy aim out of the constitution, a part of a wider revamp of central bank laws by the country's two main parties.But the constitutional amendment is expected to…

Cyprus cbank leaves base rate unchanged at 7.0 pct

Cyprus's central bank left its key interest rate steady at 7.0 percent at a board meeting on Jan. 26 as expected, a senior manager said. "The board of the central bank decided to adopt the recommendation of the monetary advisory committee to leave the…

Cyprus angered at Yugo claim on Milosevic cash

One-time Serbian ally Cyprus on Jan. 26 angrily rejected assertions that it was not co-operating with inquiries to track down funds siphoned overseas by former Yugoslav president Slobodan Milosevic.Cypriot Foreign Minister Ioannis Cassoulides said he had…

Macedonia central bank intervenes to prop denar

The National Bank of Macedonia (NBM) said on Jan. 26, 2001, it will begin intervention on the domestic foreign exchange market, selling marks to meet surging demand which has eroded the national currency, the denar. "The denar came under pressure from…

Riksbank new board member is economist, ex-MEP

Kristina Persson, an economist and former MEP, was appointed on Jan. 26, 2001, to fill a vacant seat on the Swedish Riksbank central bank's seven-member board of governors, which sets monetary policy, the bank said. Persson, 55, who has worked at the…

Mexico Ortiz sees 2001 inflation 6.5% despite VAT

Official Mexican inflation targets for 2001 won't be changed whatever the impact of a value-added tax to be imposed shortly on certain goods, central bank governor Guillermo Ortiz said Jan. 26, 2001. Mexico is to impose VAT on food and medicines by an…

Fraga says Brazil not that affected by US slowdown

A slowdown in the U.S. economy won't have a major impact on Brazil, in part because of the diversity of Brazil's export markets, central bank governor Arminio Fraga said Jan. 26. "Scenarios of economic deceleration, without a major crisis or anything…

Egypt money market authority on falling shares

Commenting on the fall in stock prices during the year 2000, an Egyptian official has said that despite the decline, bills and bonds portfolios had achieved a substantial growth rate. He explained that stock prices had fallen because of the negative…

ECB rates on hold for now, Fed moves key - Welteke

The European Central Bank's interest rate policy is on hold for the time being, though another sharp cut from the U.S. Federal Reserve would force European policymakers to carefully assess their stance, Bundesbank President ECB board member Ernst Welteke…

BoJ Gov dismissed worries over financial stability

Bank of Japan Governor Masaru Hayami has downplayed concerns that the country's financial stability could be put at risk by falling stock prices. Speaking on Jan. 25 at the Upper House audit committee, the central bank chief said, "there is no need to be…

Ex-BOJ Wakatsuki - No return to zero rates

The Bank of Japan (BOJ) is likely to keep the key short-term rate target at 0.25 percent for some time, and a return to providing free money was improbable, former BOJ director Mikio Wakatsuki said on Jan. 25. "I think the BOJ will keep the key short…

Indonesia plans talks with IMF, World Bank

Indonesia will hold talks with top IMF and World bank officials during the World Economic Forum (WEF) in Davos to determine if it can secure funds to help prop up its shattered economy. Chief economics minister Rizal Ramli is due to meet World Bank chief…

Thai banks surge on provision rules relaxation

Thai bank shares rose sharply in heavy volume on Jan. 25 on buying by local and foreign investors who decided a recent relaxation of rules over the accounting of loan loss provisions was good for the sector, analysts said. The Bank of Thailand earlier…

Lithuanian cbank okays draft bill for litas repeg

Lithuania's central bank said on Jan. 25 its board approved a draft amendment to law aimed at clearing the path for a shift in the litas currency's peg to the euro from the dollar without devaluation."The main goal of this amendment is to ... give…

Manila cuts interest rates

The Central Bank of the Philippines decided Jan. 25, 2001, to implement a further cut of 50 basis points in both the overnight borrowing and lending rates to 12.0 percent and 14.25 percent, respectively. The bank's move to cut interest rates, which takes…

Buba repeats it opposes single financial watchdog

The Bundesbank on Jan. 25 reiterated its opposition to Finance Ministry plans to strip it of its banking oversight functions and to bundle all financial system supervision in one federal institution. The central bank said in a statement it was not…

Ukraine c.bank desperately seeking t-bill buyers

Ukraine's central bank said on Jan. 25, it plans to increase loans to commercial banks secured on treasury bills this year in a move aimed at reviving the domestic debt market. The market has been at a virtual standstill since Russia's 1998 financial…

Israel's Barak backs cautious monetary policy

Prime Minister Ehud Barak said on Jan. 25 he supports the Bank of Israel's cautious interest rate policy despite calls from the business sector for sharper rate cuts. "I think this (Alan) Greenspan type of cautious, carefully weighed policy of the Bank…

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