Central Banks
ECB Duisenberg says Irish budget out of line
European Central Bank President Wim Duisenberg on Feb. 1 said he shared the European Commission's critical assessment of Ireland's expansionary budgetary policies. The Commission has asked EU finance ministers to issue an unprecedented formal reprimand…
CNB law amendment no obstacle to EU - Zeman
Czech Premier Milos Zeman does not believe that the amendment to the law on the central bank which says that the CNB in fixing its inflation target has to consult the government and introduces control of CNB's operating budget could pose an obstacle to…
CNB start paying interest on min reserves July 12
The Czech National Bank will start paying interest equal to the two-week repo rate, currently standing at 5.25 pct, on banks' minimum reserves as of July 12, 2001, Pavel Zubek of the CNB's press department told CTK news agency on Feb 1.
Armenian cbank issues celebratory banknotes
Central bank of Armenia plans to put into circulation jubilee banknotes with denomination of 50,000 AMD (more than $90), said Gevorg Tumanyan, the Head of CBA Department on emission transactions and monetary reserves. The new banknotes are to celebrate…
Kuwait cuts rate 0.5 point for 2nd time in a month
Kuwait's Central Bank on Feb 1, 2001, announced a 0.5 point cut in the discount rate for the second time in less than a month, taking it down to 6.25 percent. The bank, which announced the move in a statement to the official Kuwait News Agency (KUNA),…
Turkish cbank meets asset targets under IMF plan
The Central Bank of Turkey on Feb 1 said it has comfortably achieved the net domestic assets target (NDA), and net international reserve levels it committed to under its anti-inflation program agreed with the International Monetary Fund. The bank said in…
Ukraine c.bank reserves rise to three-year high
Ukraine's central bank said on Feb 1 its gross hard currency reserves rose to a three-year high of $1.718 billion on January 31, 2001, from $1.617 billion on December 22, 2001. Serhiy Yaremenko, head of the central bank currency regulation department,…
Taiwan cuts interest rates to record lows
Taiwan's central bank made a surprise cut in its two key interest rates by a quarter of a point on Feb 1, bringing them to record lows to boost the island's flagging economy. It cut the discount rate to 4.375 percent and the accommodation with collateral…
Philippine central bank cuts interest rates
The Central Bank of the Philippines has decided to slash its key rates by another 0.5 percentage points in a bid to maintain the differential between Philippine and foreign spreads and to prop up the economy. The move will bring down the central bank's…
West Africa welcomes common monetary institute
The opening of the West African Monetary Institute (WAMI) is an onset of a credibility building process to create an acceptable common currency for member countries, local media reported on Feb. 1, 2001.
Goodhart: George should control inflation forecast
The governor of the Bank of England should take full control of the Inflation Report - the central bank's flagship economic forecast - to avoid confusion arising from the disparate input from the nine members of the Monetary Policy Committee, London…
US Federal Reserve cuts interests by 0.5%
The US central bank, the Federal Reserve, has cut interest rates by 0.5% to 5.5%. This is the second rate cut during January 2001, as Fed chairman Alan Greenspan seeks to stop the slowing US economy plunging into recession. The Fed took the markets by…
Banco de Mexico might halt forex reserves buildup
A Banco de Mexico official said on Jan. 31, 2001, the central bank was weighing the cost of continuing to accumulate foreign exchange reserves and was considering halting its monthly auction of dollar options. "We've got to seriously consider if we want…
NY Fed extends triparty collateral for repos
The Federal Reserve on Jan. 31, 2001, extended for another year the use of agency debt and mortgage-backed securities as collateral, along with U.S. Treasuries, for repurchase agreements in daily open market operations. The Fed's policy-setting arm…
Kazakhs give details of new strategic oil fund
Kazakh President Nursultan Nazarbayev on Jan. 31 issued a decree setting out details of a special fund to make his resource-rich nation less exposed to changing prices for energy and commodities exports. The official Kazakhstanskaya Pravda newspaper said…
Bank of Mexico confirms 6.5% 2001 inflation target
The Bank of Mexico said on Jan. 31, 2001, it has now fully adopted an inflation-targeting regime and abandoned its previous system of managing monetary aggregates. However, the central bank will continue to use the money market "short" as its main policy…
BoJ deputy gov defends ending of 0% interest rate
The Bank of Japan was not wrong in ending its zero interest rate policy last August, Sakuya Fujiwara, a central bank deputy governor, said on Jan. 31. "Look at the market and economic indicators in the month following the removal of the zero rate,"…
Current role of national central banks in the ESCB
This paper by Eduard Hochreiter describes in some detail the tasks currently performed by the national central banks of the Eurosystem, using the Oesterreichische Nationalbank as an example. it does so against the background of the regime shift to the…
Fed meets, seen cutting rates sharply Jan. 31
The U.S. Federal Reserve began a two-day meeting on Jan. 30 amid widespread conviction it will cut interest rates by another half a percentage point to pump life into the world's largest economy.While the meeting started at 9 a.m. (1400 GMT) Jan. 30, an…
BOK head Chon hints at rate cuts in Feb. 2001
Chon Chol-whan, governor of the Bank of Korea (BOK), hinted on Jan. 29 that the central bank may slash the interest rate next month in a bid to bring the sliding economy to a halt. But, at the same time, he warned of "worrisome" high inflation for 2001,…
IMF OKs Colombia's 2001 economic program- fin min
The International Monetary Fund has approved Colombia's 2001 economic program, including a higher budget deficit goal of 2.8% of the gross domestic product, Finance Minister Juan Manuel Santos said Jan. 30, 2001. "The agreement basically consists of a…
Bush says will no longer comment on Fed
President George W. Bush said on Jan. 30, 2001, he had learned his lesson and will no longer comment on actions on short-term U.S. interest rates taken by the Federal Reserve. With the powerful central bank expected this week to cut borrowing costs by a…