Monetary Policy
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…
IMF stresses need for BI independence
The International Monetary Fund (IMF) reiterated on Jan. 25, 2001, the importance of maintaining the independence of Bank Indonesia and its monetary policy to ensure the recovery of the country's economy. "It's important for Indonesia to maintain the…
Colombia cbank sees 01 inflation 7.6% vs 8.0% goal
Colombia's central bank projects inflation to fall to 7.6% this year and 6.9% in 2002, according to the body's December 2000 inflation report, released on Jan. 26, 2001. The 2001 figure is down from the official goal of 8.0% and year 2000 final result of…
Greenspan-quicker Fed transcripts undesirable
Federal Reserve Chairman Alan Greenspan said on Jan. 25 the U.S. central bank should not be forced to more quickly release full transcripts of its monetary policy deliberations. The Fed currently releases the transcripts of Federal Open Market Committee…
Low inflation, US rates led to Brazil rate cut
Falling U.S. rates and confidence that inflation will fall to established targets this year prompted Brazil's central bank to cut interest rates for the second month running on Jan. 17, according to the minutes of the bank's policy meeting released Jan…
Bank of Israel posts $1.6bn excess expense in 2000
The Bank of Israel said on Jan. 24 its expenses exceeded income by 6.7 billion shekels ($1.6 billion) in 2000 compared with an 8.7 billion shekel deficit in 1999. "This was the result of two main factors: The first, an excess of 3 billion shekels in…
UK's MPC voted 5-4 to leave rates steady in Jan
Britain's central bank was split almost down the middle over whether to cut interest rates this month, with five of the nine members voting to leave rates steady at 6.0 percent while four wanted to lower borrowing costs. The Bank of England's chief…
RBNZ sees reduced inflation risk
New Zealand debt markets ended strongly on Jan. 24 after the Reserve Bank's comments on the inflation outlook were interpreted as having a dovish tone for rates. The central bank, in leaving its official cash rate unchanged at 6.50 percent, said it saw a…
Irish economy 'inconsistent' with rest of EU
The European Union's economic and monetary affairs commissioner, Pedro Solbes, said the Irish economy is "inconsistent" with that of the other member states. The commissioner has warned in the past that inflation is too high in Ireland and that the…
Zimbabwe inflation surges to 70%
Reserve Bank of Zimbabwe governor Leonard Tsumba said in Jan 2001 averageinflation is expected to rise to about 70 percent in 2001 from 55,7percent in 2000, further threatening the fragile economy.
Differing views -Swedish participation in the euro
Although Sweden, unlike the United Kingdom and Denmark, does not have an opt-out authorising it to remain outside the Euro zone even if it were to meet all the convergence criteria, the country's Minister for External Trade, Leif Pagrotsky, has insisted…
ECB has achieved price stability - Duisenberg
The European Central Bank (ECB) has achieved its overriding goal of achieving price stability in the euro area, reflecting a "substantial accomplishment," ECB President Wim Duisenberg said Jan. 24, 2001. The main focus of the ECB's monetary policy in the…
Croatia:HNB expects positive economic developments
The Croatian National Bank (HNB) expects positive changes in the economy to resume this year so that the GDP rate could grow by 4% and the export rate by 9%, HNB Governor Zeljko Rohatinski told the parliament on Jan. 24, 2001.
Hayami rules out early quantitative easing steps
Bank of Japan Gov. Masaru Hayami said Jan. 23 that an instruction issued to bank executives to study ways to boost liquidity in the nation's money market does not mean the central bank will take additional quantitative monetary easing measures any time…
Chile's economy to grow relatively fast - cbank
Chile's Central Bank forecast Jan. 23 economic growth between 5.6 and 5.9 percent for the years 2001 and 2002 respectively, as well as 3.4 and 2.9 percent inflation for the respective periods. In a monetary political report, the bank explained that the…
What Drives Productivity Growth?
Kevin J. Stiroh considers the debate on the best way to explain the sources of productivity growth in a forthcoming Economic Policy Review for the Federal Reserve Bank of New York.
US welfare reform: progress and prospects
Following a conference at the Federal Reserve Bank of New York October 2000 "Welfare reform, four years later: progress and propects", preliminary drafts of papers are now available from the Federal Reserve Bank of New York Research and Market Analysis…
Mini interview with Austria's Klaus Liebscher
Following is a summary of the Market News International interview with European Central Bank (ECB) Governing Council member and Austrian National Bank Governor Klaus Liebscher that was conducted on Jan. 22.
Japanese interest rates held at 0.25%
At the Monetary Policy Meeting held Jan 19, the Bank of Japan decided, by majority vote, to maintain the uncollateralized overnight call rate at an average of around 0.25%.