Inflation

ECB sticks to inflation line amid OECD cut calls

Jean-Claude Trichet, the president of the European Central Bank, and fellow members of the rate-setting governing council have defended the central bank's decision to fight inflation, in spite of increasingly vociferous calls for them to cut rates.

UK MPC voted 8 - 1 in favour of rate hold

David Blanchflower was the only member of the nine-strong Bank of England Monetary Policy Committee to object to the decision earlier this month to hold rates at 5.5%, opting instead for a 25 basis point cut.

British MPC faces tough choices warns deputy Gieve

The Bank of England's monetary policy committee (MPC) faces difficult decisions in the months ahead because of the dual threat of slowing growth and rising inflation, said Sir John Gieve, the deputy governor responsible for financial stability.

Fed must "respond pragmatically" to poorer outlook

Policymakers must be prepared to respond pragmatically to a recent bout of worse-than-expected data on the United States economy, said Dennis Lockhart, the president of the Atlanta Federal Reserve and a non-voting member of the Federal Open Market…

Emirates must cooperate on inflation: Al-Suwaidi

Sultan bin Nasser al-Suwaidi, the governor of the Central Bank of the United Arab Emirates, said on Tuesday that officials in all of the emirates had to work on curbing soaring inflation, but warned against tampering with exchange rates.

Paper highlights influence of Taylor rule

The rise in influence of the Taylor rule, which shows how monetary policy should adjust to ensure growth and inflation remain near target levels, played an important part in the shift towards a more transparent, more independent era of central banking,…

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.

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