Monetary Policy

ECB raises inflation forecast

GERMANY - The European Central Bank on Thursday raised its projection for inflation this year, underlining pessimism about prices that suggests the bank may raise interest rates later this year.

IMF mission arrives in Argentina

ARGENTINA - An International Monetary Fund mission landed in Argentina on Thursday to discuss the possibility of resuming billions of dollars in credit after a six-month freeze, which could open the door to other aid sources and help stop contagion to…

Korean governor hints at rate rises

KOREA - Bank of Korea governor Park Seung signalled on Wednesday that more interest rate rises might be in the pipeline as he stressed the need to curb price pressures in a rapidly expanding economy.

Polish governor's bodyguards removed

ARTICLE - The relationship between the government and central bank in Poland continues to deteriorate. A full apology from the government is in order over the latest episode, argues an editorial in the Warsaw Business Journal.

Speech by Tony Latter, HKMA, 12 June

SPEECH- Tony Latter, deputy chief executive, Hong Kong Monetary Authority on Hong Kong's currency board today and the unexpected challenge of deflation. Have central banks become a victim of their own success?

Speech by Eugenio Domingo Solans, ECB, 11 June

SPEECH - Eugenio Domingo Solans, member of the Governing Council and Executive Board of the ECB, gave a speech titled 'Exchange rate policies in the accession process' to a conference in Tallinn on 'Alternative Exchange Rate Regimes in the Globalised…

Gold in the IMF: A Factsheet

FACTSHEET - The IMF has published a factsheet detailing what its gold holdings are, how it acquired them, what its policy is on gold, and how and when it has used its gold in the past.

IMF Survey, Vol. 31, No. 11, 10 June

SURVEY - The latest fortnightly issue of the IMF Survey includes articles on world military spending, Independent East Timor, the pros and cons of tax incentives, financial development and economic growth, as well as interviews with John Shoven on US…

Breather won by Bank Indonesia on $1.3bn loans

INDONESIA - Bank Indonesia has reached a rescheduling agreement with the London Club of commercial creditors to extend the repayment period of loans worth around $300 million to 17.5 years, while other loans worth $1 billion will be extended for 10…

Reform of Taiwan cb board may improve independence

TAIWAN - Taiwan's cabinet has submitted a reform plan for the board of directors at the Central Bank of China, which focuses on the bank's independent status. Once the amendment is passed by the legislature, the central bank will maintain its supervisory…

BOK considers redenomination of currency

KOREA - The Bank of Korea is studying ways to reform the present currency unit system by issuing new won notes and coins, in a move to re-denominate the won downward and upgrade its value. This will involve shaving one or two zeros off the won's face…

Buying back long-dated bonds way forward for Japan

LETTER - Letter by Professor Tim Congdon published in the Financial Times on 10 June in response to an editorial by Sir Samuel Brittan, which in turn had commented on Prof Congdon's original article in Central Banking journal, 'What is to be done about…

Central banks should heed asset inflation

LETTER - Anthony H. Rowley, a contributor to Central Banking journal, argues in a letter published in the Financial Times on 10 June that central banks should pay more attention to asset inflation when conducting monetary policy.

Bureaucrats compete to replace RBI dep governor

INDIA - There is stiff competition to take the place of the outgoing deputy governor of the Reserve Bank of India (RBI), Dr Y. V. Reddy. According to the finance ministry, two senior bureaucrats are jockeying to control this key post which involves…

Increased hope that Turkey soon out of recession

TURKEY - A much sharper than expected rise in industrial output in Turkey has raised hopes that the country could soon recover from a deep recession. Industrial output rose 14.1% in April from a year earlier, well above a growth rate of 7.8% as predicted…

Rouble to fall as cb's overnight deposit rate cut

RUSSIA - Despite the theme of continuity in exchange rate policy which was emphasized when Sergei Ignatyev took over as head of the Central Bank of Russia in place of Viktor Gerashchenko earlier this year, the bank has subsequently made moves which imply…

Speech by Otmar Issing, ECB, 10 June

SPEECH - At the ECB Watchers conference in Milan on 10 June, Professor Otmar Issing, member of the Executive Board of the ECB, gave a speech on 'Monetary policy and the role of the price stability definition' in which he concludes that the ECB's twin…

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