Interest rates

Fed raises rates, says economic outlook unchanged

The Federal Open Market Committee decided on Tuesday 14 December to raise its target for the federal funds rate by 25 basis points to 2-1/4 percent. In its press release the FOMC signalled there had been no change in its assessment of current economic…

Hungary to publish Monetary Council minutes

On Monday 6 December the Monetary Council of the National Bank of Hungary decided, after a six month trial, to publish abridged minutes of its regular rate-setting meetings in future. This summary presents the arguments and experiences supporting the…

Philadelphia Fed's Santomero on global economy

In a speech on 'Challenges and opportunities in a global economy: Perspectives on outsourcing, exchange rates, and free trade' given on 3 December. Anthony Santomero of the Federal Reserve Bank of Philadelphia said the US economy should grow about 4 per…

RBA paper: News and interest rate expectations

The RBA Discussion Paper "News and interest rate expectations: A study of six central banks" analyses the effect of news relating to the expected path of monetary policy on interest rate futures. Results suggest that the impact of the RBA's communication…

ECB report on bond markets & interest rates

The European Central Bank published the third and extended edition of a report entitled "Bond markets and long-term interest rates in non-euro area Member States of the European Union and in accession countries" on 24 November.

The leak in China's banking system

The People's Bank of China's surprise decision to raise interest rates for the first time in nine years on 28 October prompted much speculation on the reason for the move. Some commentators said it marks the beginning of a liberalized interest-rate…

Interview with Philadelphia Fed's Santomero

In an interview published last Friday, 22 October, Philadelphia Fed President Anthony Santomero said that the Federal Reserve will be able to slow down the pace of interest rate rises if the economy grows less rapidly than it expects.

How Reserve Bank of Fiji conducts monetary policy

This article outlines how the conduct of monetary policy in Fiji is transmitted from the Reserve Bank of Fiji's (RBF) policy indicator rate (PIR) through to interest rates in the economy and finally to economic activity and its impact on inflation and…

BOJ's Fukui says prices just one hurdle

Core consumer prices at zero percent is only one hurdle the Bank of Japan will need to clear when deciding whether to stop its policy of keeping interest rates at almost zero, Governor Toshihiko Fukui said.

Bank of England MPC Minutes, 6&7 October

The minutes from the 6 and 7 October meeting of the Monetary Policy Committee of the Bank of England were released on 20 October. All nine MPC members voted to keep interest rates unchanged at 4.75 percent this month, while there seemed to be no…

Asian central banks should follow S Korea's lead

The more Asian central banks try to convince the markets that their judgment on interest rates isn't clouded by political interference, the less anyone believes them, this article says. It suggests policy makers from Jakarta and Manila to Bangkok and…

Fed's Stern says data won't change Fed tack

Minneapolis Federal Reserve President Gary Stern said on Friday 8 October in an interview that the weaker than expected gains in the labour market are not enough to change the Fed's plan to gradually raise interest rates.

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