Monetary Policy
IMF's Koehler says he didn't intend to pressure EC
GERMANY - International Monetary Fund Managing Director Horst Koehler said he had never intended to put pressure on the European Central Bank to cut rates, but reiterated that a cut would help world and European growth.
Australian inflation lowers rate cut call
AUSTRALIA - Expectations of an interest rate cut have been lowered after the release of surprisingly high inflation figures. The Reserve Bank board is due to meet next week.
Inflation fears lower rate cut hopes
EUROPE - Prospects for an early reduction in interest rates by the European Central Bank receded further yesterday as higher than expected German inflation figures were announced.
Calls grow for ECB to cut rates
EUROPE - A United Nations body yesterday, Apr 24, called for the ECB to follow the lead of the US and cut interest rates if it wants to avoid a slide into recession.
Maccarone likely to replace Pou
ARGENTINA - A congress committee has recommended that Argentine president Fernando de la Rua fires Pedro Pou, president of Argentina's central bank. Banker Roque Maccarone is tipped as his replacement.
South African growth levelled in first quarter
SOUTH AFRICA - The Central Bank of South Africa reports that growth levelled in the first quarter of 2001.
Monitoring the European Central Bank 3
BOOK - The Centre for Economic and Policy Research has published the third in its series of books monitoring the European Central Bank titled "Defining a Macroeconomic Framework for the Euro Area". It is co-authored by Alberto Alesina, Olivier Blanchard,…
International monetary policy cooperation
CENTRAL BANK RESEARCH - Giancarlo Corsetti and Paolo Pesenti at the New York Fed have written a staff report titled "International Dimensions of Optimal Monetary Policy". This article finds that the gains to be made from international monetary…
Overbidding problem in the ECB fixed rate auctions
ARTICLE - Dieter Nautz from Goethe University and Jorg Oechssler from Bonn University have written a paper "The repo auctions of the European Central Bank and the vanishing quota puzzle". The article examines the overbidding problem faced by the ECB in…
Cavallo accuses cbank chief of sowing chaos
ARGENTINA - Argentine Economy Minister Domingo Cavallo on Apr 23 accused Central Bank chief Pedro Pou of trying to create chaos to divert attention from his own problems.
Argentina impact on Mexico not significant-Ortiz
MEXICO - Mexico's economy is not being significantly hurt by the turmoil gripping Argentina's financial markets, Banco de Mexico Governor Guillermo Ortiz said on Apr 23.
IMF urges Indonesia to maintain tight mon policy
INDONESIA - An IMF official has suggested that Bank Indonesia should be more flexible in adopting tight monetary, which is aimed at curbing the inflation and reducing pressure on the rupiah.
New Kenya cbank governor to focus on inflation
KENYA - Kenya's new central bank governor said on Apr 24 the bank's focus would remain on controlling inflation and addressing supply side constraints hindering economic growth.
Britain will escape global slowdown
UK - Details revealed in a leaked IMF report suggest that Britain will escape the worst of the global economic slowdown and will fare better than its european rivals.
IMF consultation approves Canada inflation target
CANADA - The International Monetary Fund said in a statement following its annual article IV consultation that there appeared to be no compelling reason for the Bank of Canada to change its inflation target.
Bank disclosure currently inadequate
EUROPE - Survey reveals banks still have ground to make up to meet disclosure requirements.
What is wrong with Taylor Rules?
ARTICLE - Lars Svensson, professor of economics at Stockholm University, has published an article "What is Wrong with Taylor Rules? Using Judgment in Monetary Policy through Targeting Rules". In the paper, Svensson says that Taylor Rules are an…
Argentina Cavallo to recommend removing Pou-papers
ARGENTINA -Economy Minister Domingo Cavallo will recommend the firing of Central Bank President Pedro Pou, local newspapers reported on Apr 22.
Solbes rebuffs O'Neill over interest rate cuts
EUROPE - European Economic Affairs Commissioner Pedro Solbes on Apr 23 raised the heat ahead of a meeting of Group of Seven finance ministers by rejecting U.S. Treasury Secretary Paul O'Neill's prescription for the euro zone.
Bank of France sees Q1 consumer spending rebound
FRANCE - French consumer spending, seen as the nation's best buffer against the impact of international economic slowdown, is believed to have rebounded in the first quarter of 2001, the Bank of France said on Apr 23.
Bank of Israel strike postpones interest rate cut
ISRAEL - In an unprecedented move, the Bank of Israel said on Apr 22 that it would delay its May interest rate decision because an internal labour dispute has disrupted the flow of key statistical information and analsyis.
Czech cbanker sees no CPI impact from deficit
CZECH REPUBLIC - Czech central bank Vice-Governor Oldrich Dedek said on Apr 23 the poor state of public finances remains a concern but he expects to see no inflationary impact from it in 2001.
Yen weak vs dollar - ex-MOF Sakakibara-Kyodo
JAPAN - The yen is likely to remain weak against the dollar for the time being, Eisuke Sakakibara, a former vice finance minister for international affairs, said in an interview with Kyodo News this week.
EU president's statement after Ecofin meeting
EUROPE - Following is the text of an introductory statement by the European Union's Swedish president following the first session of the informal Ecofin meeting on Apr 21.