Interest rates

PBOC's Tang says China may not tighten further

China may not need to tighten its macro-economic policy further in the near future, Tang Xu, the director of the People's Bank of China's research bureau, said in an interview published in the official Shanghai Securities News.

Bank of Canada raises rates

The Bank of Canada announced Wednesday 24 May that it is raising its target for the overnight rate by one-quarter of one percentage point to 4 1/4 per cent. The move had been widely expected.

BOJ member sees reserve cut problem

According to minutes of the Bank of Japan's April 10-11 board meeting, published Wednesday 24 May, a policy maker said a rapid reduction in reserves by the central bank may spur speculation of an interest-rate increase from near zero.

Hoenig warns on rate overshoot - report

The Federal Reserve must guard against raising interest rates too high, Kansas City Federal Reserve President Tom Hoenig said Friday 19 May in an interview with the Wall Street Journal's Greg Ip.

BOJ's Fukui sees rates rising slowly - report

The Bank of Japan will raise interest rates gradually to keep inflation under control while also giving the economy time to recover, the Nihon Keizai Shimbun quoted BOJ governor Toshihiko Fukui as saying in an interview published Tuesday 23 May.

BoE's Nickell sees UK inflation checked

Spare capacity in the UK economy will help lower inflationary pressures, and will keep inflation below the Bank of England's target, according to outgoing Bank of England Monetary Policy Committee member, Steve Nickell.

Comment: Bank of Japan update

The Bank of Japan's monetary policy committee meets this week with an interest rate decision expected on Friday. With any ideas of an imminent rate hike all but ruled out, the emerging consensus is that the shift could come in July.

BoJ's Fukui on the outlook for Japan's economy

In the speech 'The outlook for Japan's economy and the conduct of monetary policy' given on 15 May Toshihiko Fukui of the Bank of Japan said completing the process of reducing excess funds in the banking system and raising short-term interest rates are…

No set course for rates says ECB's Noyer

Bank of France governor Christian Noyer said on Tuesday 16 May that the European Central Bank has not decided on a predetermined direction for eurozone interest rates and will consider the economic data.

How bold a move from the ECB?

According to this article published Friday 12 May, a rate increase at the European Central Bank's upcoming meeting is almost certain, with estimates ranging between 25 and 50 basis points.

Comment: Inflation expectations

Ever since Milton Friedman's famous analysis of the "leads and lags" between interest rate changes and price- and output movements in 1961, the need for "forward-looking" monetary policy has been universally accepted.

BoE's new money market framework

The Bank of England published on Monday 15 May the lists of banks and building societies participating at the launch of its new framework for implementing the Monetary Policy Committee's interest rate decisions.

RBI's Reddy on global imbalances

In the speech 'Global imbalances - An Indian perspective' given on 11 May Dr.Y.V.Reddy of the Reserve Bank of India said any large adjustments in major currencies and global interest rates would have a significant impact on the economy.

Fed raises rates to 5%

The Federal Open Market Committee decided Wednesday 10 May to raise its target for the federal funds rate by 25 basis points to 5 percent. In its statement the FOMC said "some further policy firming may yet be needed."

Comment: Unravelling the RBA hike

The Reserve Bank of Australia has joined the world's leading central banks in tightening mode. Last week's rate rise was largely unexpected and opinion is split over how far the central bank will go in hiking rates this year.

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