Inflation

Central banks with dual role face tough choices

Central banks, such as the Federal Reserve, with the dual mandate of maintaining price stability and economic growth, should not give equal weight to their inflation and unemployment goals, a study by the Kansas City Federal Reserve finds.

Saudi must diversify investments, says top bank

The National Commercial Bank, Saudi Arabia's largest state bank, has called on the government to set up a sovereign wealth fund to cut the country's exposure to the greenback. The central bank should also look at de-pegging the riyal from the dollar.

ECB should discuss inflation disparities

The divergence between actual eurozone inflation and that perceived by the public in a number of euro area countries represents a communication challenge for the European Central Bank, says Lucas Papademos, the vice-president.

ECB ready to act as inflation stays high

Jean-Claude Trichet, the president of the European Central Bank (ECB), said on Saturday that the rate-setting governing council was ready to act to control rising prices after figures published Friday showed euro-area inflation stayed at 3.1%.

Venezuelan inflation shoots up to 22.5%

The Central Bank of Venezuela said on Wednesday that inflation in the metropolitan area of Caracas, the country's capital, hit 22.5% in 2007, the highest official rate in Latin America.

Philippines cuts rates to 5.25%

The Central Bank of the Philippines's rate-setting board voted on Thursday to reduce its benchmark overnight borrowing rate to 5.25%. The decision marks the third rate cut in a row for the central bank.

Renminbi revaluation would help dampen inflation

An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…

US markets unconvinced by 1980s inflation fall

Financial markets were sceptical of the Federal Reserve's commitment to low inflation even after the period of disinflation in the early 1980s, research published by the Kansas City Federal Reserve finds.

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