Interest rates

Growth fears push Norway to cut interest rates

Norway's central bank surprised economists and cut interest rates on Wednesday as growth concerns outweighed stubborn wage inflation. Business leaders had called for a cut to kickstart the economy. The Bank's accompanying press release appeared to…

Thinking about life after Greenspan

ARTICLE - America's interest rates came under the spotlight again on December 10th, when the Federal Reserve met for the last time this year. At the Fed, as well as at the Treasury department, attention is turning to regime change. This article…

Monitoring the European Central Bank - Update

RESEARCH - Surviving the Slowdown, Monitoring the European Central Bank Update No. 4, December 2002, authors include David Begg and Paul De Grauwe. MECB 4 describes the challenge for monetary policy and assesses the ECB response. Interest rates fell much…

ECB chief says euro zone inflation risks falling

Duisenberg's comments on Tuesday, in testimony to the European parliament, seem to strengthen feeling that the ECB will cut interest rates when it meets on Thursday. The futures market seems certain of at least a quarter point cut with a fifty per cent…

Issing: ECB not satisfied with inflation rate

European Central Bank Chief Economist Otmar Issing Monday attempted to debunk talk of deflationary risks in the euro zone, indicating that stagflation is actually a bigger risk for the region. The ECB's Governing Council meets this week and is widely…

Welteke suggests ECB rates may be cut soon

A member of the European Central Bank's governing council suggested in comments published Friday that the bank could cut interest rates by as much as half a percentage point next week, more than a year after it last made a change.

ECB may be ready to cut rates - Lucas Papademos

European Central Bank Vice-President Lucas Papademos on Wednesday gave the latest sign the bank was ready to reduce interest rates, saying the improved inflation outlook gave more room for a rate cut. The ECB Governing Council is due to meet on 5…

Fed governor Bernanke repeats confidence on prices

Much recent press comment has focussed on whether the US economy could be set for a period of deflation. In a speech made Thursday Ben Bernanke said he was confident that the Federal Reserve still had the fire power left, even if interest rates fell…

Reserve Management in an Era of Low Returns

RESEARCH - Although central banks have traditionally conducted their reserves management in a conservative and risk-averse way, the very low interest rates we see now have caused central banks, like other fixed income investors, to search for higher…

Reserve Bank of New Zealand Press Release

PRESS RELEASE - The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5.75 per cent. In addition, the Bank's projections show no change in short-term interest rates over the period ahead - reflecting the Bank's sense that the risks…

Central bankers do it their way

ARTICLE - It is as well that central bank actions are not co-ordinated. The US Federal Reserve has a clear bias towards stimulus and preventive action, as its half-point cut in interest rates this week shows.

ECB Press Release

PRESS RELEASE - At today's meeting the Governing Council of the ECB decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 3.25%, 4.25…

RBA holds interest rates steady again

AUSTRALIA - The Reserve Bank of Australia, in a widely anticipated response to a worsening global economy and the growing impact of the drought, announced on Wednesday that it had decided to leave interest rates on hold for a fifth month.

The Fed should cut next week

ARTICLE - The US economy is growing around trend, unemployment is at its lowest post-recession peak for decades, the housing market is firing on all cylinders - and the financial markets are expecting the Federal Reserve to cut interest rates to a 40…

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