Inflation

South African inflation target band remains

The South African Reserve Bank's current inflation target band of 3% to 6% will be maintained despite criticism from the International Monetary Fund (IMF), finance minister Trevor Manuel announced on Monday 6 August.

Calls for New Zealand to drop inflation target

The New Zealand stock exchange operator, New Zealand Exchange (NZX), has called for on the country's central bank to abandon its strict inflation target. Michael Cullen, the finance minister, called the suggestion "very interesting and very well…

Trichet signals September hike

The European Central Bank (ECB) today left interest rates unchanged at 4%. In a surprise press conference after the announcement, Jean-Claude Trichet, the president of the central bank, dropped a strong hint that rates will rise at the next meeting in…

Bank of England leaves rates unchanged

The Bank of England today announced that it would leave its benchmark interest rate at 5.75%. The decision to hold rates steady was widely expected, though most economists expect rates to rise to 6% before the end of this year.

Explaining inflation differentials

This working paper by the International Monetary Fund suggests that some central banks may aim at comparatively high inflation rates mainly to make up for, and to perhaps exploit, lagging internal and external liberalisation in their economies.

Indian cash reserve ratio increase

The Reserve Bank of India, the country's central bank, today left its key interest rates - the repurchase rate and the reverse repurchase rate - unchanged at 7.75% and 6% respectively, but increased the cash reserve ratio.

Zimbabwe issues new $200,000 note

The Reserve Bank of Zimbabwe has introduced the latest in a series of temporary banknotes which are intended to relieve a critical shortage of notes in the inflation-ravaged country.

Slovakian rates on hold

The board of Narodna Banka Slovenska, the central bank of Slovakia, decided keep current interest rates on hold after a meeting of the monetary policy committee.

IMF on euro area policies

A report by the International Monetary Fund on euro area policies, released on 31 July, said that the outlook for the region was the best in years, but stabilising inflation below 2% may imply further gradual tightening of monetary policy.

Colombia raises rates

Colombia's central bank raised the overnight interbank rate by a quarter of a percentage point to 9.25%, the highest level since 2001.

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