News

Portugal cbank warns govt on wages, inflation

Portugal's central bank on Jan. 25 delivered a slap on the wrist to the Socialistgovernment for raising state sector wages too much, saying itposed a risk to inflation. "The main risk to inflation forecasts comes from salariesand it would be extremely…

Czech cbank cuts inflation fcast, leaves rates

The Czech central bank board, in the face of weaker price pressures, discussed the possibility of a rate cut at its regular weekly board meeting on Jan. 25 but left rates unchanged, vice-Governor Ludek Niedermayer said. Monetary department chief Ales…

Israel's Barak backs cautious monetary policy

Prime Minister Ehud Barak said on Jan. 25 he supports the Bank of Israel's cautious interest rate policy despite calls from the business sector for sharper rate cuts. "I think this (Alan) Greenspan type of cautious, carefully weighed policy of the Bank…

Ukraine c.bank desperately seeking t-bill buyers

Ukraine's central bank said on Jan. 25, it plans to increase loans to commercial banks secured on treasury bills this year in a move aimed at reviving the domestic debt market. The market has been at a virtual standstill since Russia's 1998 financial…

Buba repeats it opposes single financial watchdog

The Bundesbank on Jan. 25 reiterated its opposition to Finance Ministry plans to strip it of its banking oversight functions and to bundle all financial system supervision in one federal institution. The central bank said in a statement it was not…

Manila cuts interest rates

The Central Bank of the Philippines decided Jan. 25, 2001, to implement a further cut of 50 basis points in both the overnight borrowing and lending rates to 12.0 percent and 14.25 percent, respectively. The bank's move to cut interest rates, which takes…

Lithuanian cbank okays draft bill for litas repeg

Lithuania's central bank said on Jan. 25 its board approved a draft amendment to law aimed at clearing the path for a shift in the litas currency's peg to the euro from the dollar without devaluation."The main goal of this amendment is to ... give…

Thai banks surge on provision rules relaxation

Thai bank shares rose sharply in heavy volume on Jan. 25 on buying by local and foreign investors who decided a recent relaxation of rules over the accounting of loan loss provisions was good for the sector, analysts said. The Bank of Thailand earlier…

Indonesia plans talks with IMF, World Bank

Indonesia will hold talks with top IMF and World bank officials during the World Economic Forum (WEF) in Davos to determine if it can secure funds to help prop up its shattered economy. Chief economics minister Rizal Ramli is due to meet World Bank chief…

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…

BoJ Gov dismissed worries over financial stability

Bank of Japan Governor Masaru Hayami has downplayed concerns that the country's financial stability could be put at risk by falling stock prices. Speaking on Jan. 25 at the Upper House audit committee, the central bank chief said, "there is no need to be…

Szapary appointed vice president of Hungary cbank

Gyorgy Suranyi, head of the National Bank of Hungary (MNB), has nominated Gyorgy Szapary to be MNB vice president as of Feb. 21, 2001. Szapary is currently a consultant at the MNB, and held the post of MNB vice-president until 1999. However, Prime…

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…

Yugoslavia to issue few licences to foreign banks

Yugoslavia's central bank saidon Jan. 25 it would issue only a few licenses to foreign bankswhile others would have to buy into existing ones, as part ofefforts to turn around the massively indebted sector."The National Bank of Yugoslavia will issue a…

M&A Bank attracts attention of Austrian regulator

Unconfirmed reports suggest that the Austrian finance supervisory authority has decided to bring forward a routine inspection of M&A Bank, a Vienna-based institution specialising in managing the assets of wealthy private customers. M&A Bank has attracted…

Kuwait helps defend Lebanese pound with $100m

Kuwait has decided to deposit $100 million with Lebanon's central bank to help defend the Lebanese pound and raise depleted foreign reserves, the office of Prime Minister Rafik al-Hariri said on Jan. 25.Hariri's office said that the Kuwaiti Fund for Arab…

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