Monetary Policy

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.

Parry on the prospects for the US economy

In a speechon 'Prospects for the National and Local Economies: A Monetary Policymaker's View' Robert Parry of the Federal Reserve Bank of San Francisco said if it seemed appropriate, we still would have room to give a boost to the economy - even though…

New BIS chief says banks weathering downturn well

In an interview with Reuters Malcolm Knight, who took over as general manager of the BIS in March, said though banks have suffered a combination of woes, including uncertainty over the Iraq war, market volatility and the economic downturn, "the overall…

Brazil's Meirelles says inflation 'stubborn'

Brazil's central bank governor Henrique Meirelles said in a Reuters interview on Monday 2 June that last year's collapse in the value of the real has left stubborn inflationary pressures with prices failing to adjust domestically after the fall in the…

"Myths surrounding a deflationary spiral"

An article published in the Financial Times argues that although some commentators think that the world economy is about to be devoured by deflation, in fact UK and Eurozone rates are currently at 3 and 1.9 per cent. Jacek Rostowski says that those…

ECB's Duisenberg says inflation receding

Speaking at the International Monetary Conference on Tuesday 3 June, Wim Duisenberg said inflation pressures had fallen back significantly in recent months and the pace of growth in Europe should pick up, according to a Reuters report.

Bulgarian national bank chief to run for 2nd term

Svetoslav Gavriiski said on Tuesday 3 June that he intends to run for a second six-year term as governor of the National Bank of Bulgaria, according to a report from Novinite. Earlier in the day Bulgarian President Georgi Parvanov praised the work of the…

Fed's Greenspan sees signs of recovery

Speaking to the gathering of top central bankers in Berlin on Tuesday 3 June, Fed chairman Alan Greenspan said indications were that a "fairly marked turnaround" was on the way, according to a report by Assoiated Press.

IMF launches programme for West Africa

IMF Deputy Managing Director, Eduardo Aninat launched a programme designed to increase the capacity of African governments to conduct growth orientated, poverty reducing policies, according to a report by All Africa News. The launch was attended by…

Sveriges Riksbank, Financial Stability Report

Sweden's central bank, the Sveriges Riksbank, published its first Financial Stability Report for 2003 on 3 June. Since the last report economic prospects have been revised downwards for Sweden as well as for other countries of economic and financial…

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