Monetary Policy

Book published on ECB's 2nd conference

The European Central Bank (ECB) has published a book entitled "The transformation of the European financial system", containing the proceedings (papers, discussants' comments and summaries of the general discussions) of the Second ECB Central Banking…

U.K. Euro Decision: Assessment and Analysis Guide

A report published on Monday 9 June by Bloomberg News provides a concise guide to the UK decision on the euro. It lists the five tests and the 18 separate studies used in the decision process as to whether to call a referendum on adopting the euro in the…

RBA chief Macfarlane denies conflict with gov't

Reserve Bank of Australia governor Ian Macfarlane said on Sunday 8 June that although there may be differences of opinion between the Treasury and the Bank's board there was no conflict between the RBA and the government, according to The Australian.

UK 'should join euro' when economics are right

The UK chancellor Gordon Brown confirmed on Monday 9 June that only one of the five economic tests had been passed for Britain's entry to the euro. He also set out measures that would increase economic convergence between the UK and eurozone saying he…

More dynamic BOJ sees off media critics

Senior BOJ staff professes themselves pleased with the public relations impact of the more active communications strategy followed since Toshihiko Fukui took over from Hayami-san as governor in March. "Even Yomiuri Shimbun has stopped criticizing us,"…

Danish central bank cuts rates to 2.15%

The Danish central bank has again mirrored the ECB's half point rate cut yesterday by also cutting rates half a percent to 2.15%, according to a Bloomberg report. This is its lowest level in almost two centuries.

Sound economics help - Dodge speech

David Dodge identifed the Bank of Canada's inflation-targeting regime as a key stablising force for the Canadian economy. He was speaking in Berlin at the to the German-Canadian Business Club.

Euro rises as ECB cuts rates by 0.5%

Slowing inflation has prompted the ECB to at last cut rates by half a percentage point to 2%, after persistent pressure from the markets, Bloomberg reports. The immediate consequence was a rise in the euro.

RBNZ lowers rates to 5.25%

Weak consumer confidence caused the Reserve Bank of New Zealand to cut the official cash rate by a quarter of a percentage point to 5.25%, Reuters reports. Although the cut was expected, some economists had predicted it would be greater.

Venezuelan cb urges easing of forex controls

A director of Venezuela's central bank, Armando Leon, has pressed for the government to ease - although not to end - the country's currency control system set up four months ago, in the face of a deepening recession, according to Reuters.

Australia leaves rates unchanged at 4.75%

The Reserve Bank of Australia has now kept interest rates on hold at 4.75% for a year, the New Zealand Herald reports, as a cut in rates could further raise already worrying levels of consumer debt while a raise would damage exports.

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