Ruble Devaluation Won't Fix Russia's Economic Woes, EBRD's Berglof Says Sep 14, 2009
The bank, which wants to pursue an inflation target once it moves to a free floating currency, widened the rubles trading range to 26 to 41 against a dollar-euro basket in January. Absolutely Right. (Bloomberg -- Europe)
Brazil's economy out of recession Sep 12, 2009
The rate is below the central bank's 2009 inflation target of 4. 5. (BBC News -- Americas)
Brazilian Futures Yields Drop as Central Bank to Avoid `Abrupt' Reversal Sep 11, 2009
The central bank has an inflation target of 4. 5 percent this year and next. (Bloomberg -- Latin America)
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with Chile Sep 10, 2009
The sound policy framework, underpinned by an inflation target regime, a structural budget rule, and a flexible exchange rate, allowed the economy to enter the crisis with a fundamentally robust position ... Executive Directors commended the Chilean authorities for their sound policy framework underpinned by an inflation target regime, a structural budget rule, and a flexible exchange rate regime. (IMF News)
Selective Quotation Of IMF, Confused GDP Arithmetic Sep 9, 2009
Under the inflation targeting (IT) framework, monetary policy will aim at achieving a medium term inflation target of 7-9 per cent within a forward looking time horizon of 18-24. Again, the question to ask is: would the inflation reduction be necessary if the NPP had achieved its stated target in 2008 of reducing inflation to 6-8. (Ghana Web, Ghana)
Wage hike for SARB Sep 4, 2009
"To a large extent market trends dictate remuneration," he told the briefing while confirming the 10 percent hike which was above the country's three to six percent inflation target. The SARB's governor Tito Mboweni received a pay hike of just over 14 percent. (iAfrica.com)
Barbosa Says Brazil Is in V-Shaped Recovery, Detects Room for Cut in Rate Sep 4, 2009
Brazil has the capacity to sustain the current recovery and to expand 4 percent or 5 percent next year without threatening the inflation target, Barbosa, 39, said. Given inflation, maybe it will be possible to further reduce the rate in months ahead. (Bloomberg -- Latin America)
Dollar sinks after RBA verdict Sep 1, 2009
The board will continue to monitor how economic and financial conditions unfold and how they impinge on prospects for sustainable growth in economic activity and achieving the inflation target,'' Mr Stevens said in a statement. Mr Capurso said the statement was more ''dovish'' than financial mark 00004000 ets had expected. (Sydney Morning Herald -- Business)
Bonds steady; all eyes on CPI Aug 27, 2009
The new consumer inflation index - the measure used by the South African Reserve Bank for its inflation target - is expected to have receded to 6. 6% year-on-year (y/y) in July from the 6. (Business Report, South Africa)
2008 Budget Deficit Revised to 24.2% of GDP Aug 26, 2009
Ghana has increased its inflation target for this year to 14. 5 percent, from 12. (Ghana Web, Ghana)
BoE pumps $84B into UK economy Aug 7, 2009
But in an exchange of letters with UK finance minister Alistair Darling, Bank of England Governor Mervyn King said an extension of the scheme was necessary to meet the government's 2 percent inflation target. Quantitative easing is often described as "printing money" -- although no new notes and coins are actually created. (CNN -- Money / International)
Australian interest rate remains at 49-year low Aug 4, 2009
"The board will continue to monitor how economic and financial conditions unfold and how they impinge on prospects for sustainable growth in economic activity and achieving the inflation target," Stevens said. He said the global economy was stabilizing, led by China, which was having a positive impact on other economies in the region. (The Star Online, Malaysia)
Opinion: How debt could turn into a runaway ghoul Aug 3, 2009
By contrast, the current real yield on index-linked gilts is 1-1 per cent, while the nominal yield on conventional medium-dated gilts is about 4 per cent, which is only 2 per cent above the official inflation target. The Labour government has been lucky, in that its ability to issue gilts on a low real yield has eased the task of maintaining financial stability. (FT.com -- Markets)
Rand needs momentum Jul 27, 2009
The new consumer inflation index, due for release on Wednesday - the measure used by the South African Reserve Bank for its inflation target - is expected to have receded to 7. 2 percent year-on-year in June from the elevated 8. (iAfrica.com)
Brazil's Central Bank Cuts Rate to 8.75%, Slowing Pace on Economic Rebound Jul 23, 2009
The central bank said that the current rate, as of now, allows Brazil to achieve a growth rate of about 4 percent and at the same time meet the inflation target, , chief strategist at Banco WestLB in Sao Paulo, said in a telephone interview. The bank communicated emphatically that the easing cycle came to an end. (Bloomberg -- Latin America)
Transcript of a Conference Call on the Article IV Consultation with the United Kingdom Jul 22, 2009
This means the Bank of England will be able to act as required to meet the inflation target. Ultimately, of course, trust in the central bank's operational independence depends also on the broader situation of public finances. (IMF News)
South Africa: Taxpayers to Foot Strike Bill [editorial] Jul 17, 2009
Pressure on employers from the government and Fifa was at least partly responsible for the speedy settlement and the size of the wage deal, which at 12% is well above average and precisely double the upper end of the Reserve Bank's inflation target. Other conditions agreed to by the employers to end the strike included the extension of social benefits such as medical aid and pensions to all permanent employees. (allAfrica.com)
Brazil Monetary Council May Keep 2011 Inflation Target at 4.5%, Veja Says Jun 28, 2009
Brazil May Keep 2011 Inflation Target at 4 ... Brazil May Keep 2011 Inflation Target at 4 ... June 27 (Bloomberg) -- Brazils National Monetary Council may keep the countrys inflation target for 2011 unchanged at 4. (Bloomberg -- Latin America)
Bank holds rates firm on inflation fear Jun 27, 2009
Cosatu has argued for substantially bigger interest rate cuts and has called for inflation targeting to be scrapped ... In response to a question on whether the bank's 3 percent to 6 percent inflation target range could be raised, Mboweni pointed out that the range was not set by the central bank but by the government. (Business Report, South Africa)
Brazil's Central Bank Expects 2009 Gross Domestic Product to Expand 0.8% Jun 27, 2009
Monetary policy, without hurting the commitment to the inflation target, and fiscal policy tend to help the recovery of economic activity. . (Bloomberg -- Latin America)
Statement of the Monetary Policy Committee Jun 26, 2009
While a downward trend for the subsequent two years remains, only the financial analysts predict inflation to be within the inflation target range in the coming two years ... However the break-even rate has generally remained within the inflation target range over the short- to medium-term maturities. (Business Report, South Africa)
ECB warns of greater pain from eurozone recession Jun 5, 2009
" The ECB was also committed to a timely exit strategy, with extraordinary measures to be unwound as soon as the first signs of stabilisation emerge. But Trichet sidestepped questions on how the bank would pay for the bond purchases and whether it would "sterilise," or offset the operation through the sales of other assets or by issuing debt of its own, for example. In addition to the new growth forecasts, ECB staff now expects inflation to reach 0.3 per cent this year and 1 per cent in 2010,... (Sydney Morning Herald -- Business)
Bank of Canada Leaves Rate at 0.25%, Says Dollar Gain May Slow Recovery Jun 5, 2009
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target, the central bank said today. The bank retains considerable flexibility in the conduct of monetary policy at low interest rates, the statement said. (Bloomberg -- Canada)
South Africa: Another Bubble in the Pipeline? [editorial] Jun 1, 2009
Artificially low imported inflation played a significant role in allowing the Reserve Bank to keep interest rates lower for longer without exceeding its inflation target band, encouraging the consumer boom and debt accumulation that is putting the real economy under pressure today. As recently as last week, market analysts were expressing the hope that the rand's comeback against the dollar would continue so the monetary policy committee could provide further relief at its next meeting. (allAfrica.com)
Drastic rate cut needed May 28, 2009
"We need a national conversation on matters such as the Reserve Bank's inflation target. In the past number of years, when the rest of the world slashed interest rates, ours was continuously raised. "The effect was to keep many South Africans on the fringes of the economy at a time of growth. "What is required now is for the Reserve Bank to make a drastic cut in the interest rate to kick-start the economy. High interest rates are frustrating the attempt to create jobs," he said. (iAfrica.com)
Reviving growth a top priority: Pranab Mukherjee May 27, 2009
Asked about the inflation target for 2009-10, he said that the rate of price rise at 0. 61 per cent (for the week ended May 9) is reasonably down and provides enough leverage. (India Times, India)
Electricity will heat up inflation - experts May 22, 2009
The government has set the inflation target range at between 3 percent and 6 percent. The overall administered fees inflation rate was 2. (Business Report, South Africa)
Inflation `Cure' Exposed When In-Laws Move In May 22, 2009
He had written the (literally) on the subject, based on his empirical research, and had come to believe -- at least until the financial crisis turned him into chief liquidity officer -- that adopting an explicit numerical inflation target is the best way for central banks to increase their credibility and achieve price stability. Bernanke probably never dreamed hed be asked to use inflation targeting to achieve higher prices. (Bloomberg -- Columnists)
United Kingdom - 2009 Article IV Consultation Concluding Statement of the Mission May 22, 2009
This puts the MPC in a strong position to determine and implement an exit from quantitative easing as appropriate to meet the inflation target. The exit could include a combination of asset sales, other liquidity-draining operations, and higher interest rates. (IMF News)
Bank of Canada Says Lower Inflation Target May Benefit Country's Economy May 22, 2009
May 21 (Bloomberg) -- Canadas economy may benefit from a lower inflation target, central bank researchers said in a report as policy makers debate whether to modify a goal of annual of 2 percent. An inflation target below 2 percent is likely preferable to the status quo, Robert Amano, Tom Carter and Don Coletti wrote in the Bank of Canadas Review, published today in Ottawa ... The Bank of Canada has a five-year agreement on its inflation target with the federal government that expires... (Bloomberg -- Canada)
Fed Should Fuel Faster Inflation to Help U.S. Economy, Mankiw, Rogoff Say May 20, 2009
Even so, he sees good reasons for the Fed to lift its implicit, medium-term inflation target to 3 percent to 4 percent from 1 ... That implies its inflation target has been too low because its left the Fed running up against the zero bound on nominal interest rates. (Bloomberg)
Central Banks May Need More Power for Financial Stability May 18, 2009
Financial stability, for its part, would be difficult to codify in central bank objectives, as it is not as simple as naming a range for consumer price growth as an inflation target. "Financial stability is ... somewhat incomplete as a guiding light for policy actions and as a basis for accountability," it said. (ABC News -- Wire)
Experts positive on revisions to inflation target May 14, 2009
Revisions to the Reserve Bank's inflation targeting mandate may boost demand for the country's assets, as lower borrowing costs help spur an economic recovery, according to Commerzbank. "An adjustment to a higher inflation target would allow the central bank to cut interest rates more aggressively to accommodate a quicker path to economic recovery," Luis Costa, an emerging markets strategist at Commerzbank, said yesterday ... Minister of Finance Pravin Gordhan said he would "engage" with labour... (Business Report, South Africa)
Inflation target open to debate May 13, 2009
Gordhan, who was sworn in as finance minister on Monday, said in a series of radio and television interviews that the government would be discussing policy issues, including inflation targeting - one of the investor friendly policies that labour and the ANC's communist allies wants to change ... Asked on SABC television how the government would address labour demands to drop inflation targeting, Gordhan said: "By talking. All the issues have more than one solution. I don't think any one of us... (Business Report, South Africa)
China's CPI falls 1.5% in April May 11, 2009
Premier Wen Jiabao told the annual national legislative meeting in the early March that the inflation target for this year would be about 4 percent. Xu lianzhong, official with the National Development and Reform Commission, the top planning agency, told Xinhua that the CPI would likely bottom out in the second quarter, so the possibility of further interest rate cuts could not be ruled out. (Xinhuanet, China)
Return to rate rise May 8, 2009
"It should come down to five percent in the third quarter of this year, but my concern is in the longer term it is likely to creep back upwards to outside of the inflation target," he says. Jammine points out that the cost of services is rising more rapidly because the price setters of those services looked back at the inflation rate last year and increased their prices. (iAfrica.com)
Inflation: who expects what, and why they say it May 5, 2009
4 percent next year, below the ceiling of the bank's inflation target range of 3 percent to 6 percent. But business executives and trade union officials expect inflation to average 8. (Business Report, South Africa)
Deflation doldrums? May 2, 2009
Not surprisingly, central bankers who are committed to a formal or informal inflation target of about 2% per year are unwilling to abandon their mandates openly and to assert that they are pursuing a high rate of inflation. Nevertheless, their expansionary actions have helped to raise long-term inflation expectations toward the target levels. (The Star Online, Malaysia -- Business)
* Deflation raises questions about global recovery Apr 29, 2009
Not surprisingly, central bankers who are committed to a formal or informal inflation target of about 2 percent per year are unwilling to abandon their mandates openly and to assert that they are pursuing a high rate of inflation. Nevertheless, their expansionary actions have helped to raise long-term inflation expectations toward the target levels. (Taipei Times, Taiwan -- World Business)
Press Release: IMF Executive Board Approves US$935 Million Stand-By Arrangement for Guatemala Apr 28, 2009
The authorities plan to strengthen their inflation-targeting framework further, with a view to achieving a medium-term inflation target of 4 percent (+/- 1%). They are committed to maintaining a flexible exchange rate to facilitate the adjustment to external shocks. (IMF News)
Carney May Buy Government, Corporate Bonds to Increase Canada Money Supply Apr 20, 2009
That would be the longest stretch of falling prices since the 1950s; a test of Carneys ability to meet his 2 percent inflation target. The bank will be under international pressure to use quantitative easing, although it will have its own concerns about it, said Duane Rockerbie, chair of the economics department at the University of Lethbridge in Alberta. (Bloomberg -- Canada)
Eddie George, First Governor of Independent Bank of England, Dead at 70 Apr 19, 2009
George went out of his way to make the workings of the bank, including the new inflation target and rate-setting process, more transparent in the run-up to independence. Having made it a more familiar institution to the public, it was easier for the Labour party to make it independent, said Allen. (Bloomberg -- UK)
Pace of inflation slows in March Apr 18, 2009
0 per cent very close to economists' forecasts and bang on the Bank of Canada's inflation target. On a monthly basis, inflation was considerably slower in March than a month earlier. (Globe and Mail -- Business)
China's GDP up 6.1 percent in Q1 2009 | CPI falls 1.2% Apr 16, 2009
The government has set a full-year inflation target of 4 percent. The producer price index, a major measure of inflation at the wholesale level, fell 4. (Xinhuanet, China)
Did I mention a stolen goat? Apr 15, 2009
5% inflation target they reached in 2000 during their last administration. In fairness to the government, we can all point the finger of blame on the global economic downturn. (Ghana Web, Ghana)
Bank of Canada Should Boost Money Supply to Spur Growth, C.D. Howe Says Apr 15, 2009
April 14 (Bloomberg) -- Canadas central bank should increase the supply of money in the economy to spur economic growth and defend the credibility of its inflation target, C.D. Howe Institute researcher said ... The recovery needs support from the continued credibility of the banks 2 percent inflation target, Laidler wrote in a report from Toronto today. (Bloomberg -- Canada)
Canada Quantitative Easing to Be `Gentler' Than U.S., CIBC's Shenfeld Says Apr 7, 2009
April 6 (Bloomberg) -- Canada will adopt a gentler form of quantitative easing than the U.S. has because of its explicit inflation targeting policies and healthier banks, said , chief economist at Canadian Imperial Bank of Commerce ... Governor Carney said at an April 1 speech that publishing guidelines doesnt mean using extraordinary policies is preordained, and any new steps will be consistent with the inflation target. (Bloomberg -- Canada)
Treasury Pulse Mar 28, 2009
Towards the end of the week, BNM published its annual report in which it reiterated the revised GDP forecast of -1% to +1%, and inflation target of 1. 5%-2% in 2009. (The Star Online, Malaysia -- Business)
Rand tad softer Mar 26, 2009
The increase in South Africa's consumer price index, which is used by the South African Reserve Bank for its inflation target, was up 8. 6 percent year-on-year in February from 8. (iAfrica.com)
Uncertainty lingers on the course of inflation Mar 25, 2009
But because of technical base effects, "it will marginally exceed the upper end of the inflation target range" after that, before returning within the range in the second quarter of next year. The stubborn inflationary pressures are proving a double whammy for consumers - by taking more money out of their pockets and also by delaying the pace at which interest rates can be cut. (Business Report, South Africa)
Mboweni announces repo rate cut Mar 25, 2009
"The global economy has continued to weaken significantly in recent months as a result of the turmoil in the financial markets. "There is growing uncertainty regarding the depth and duration of the economic slowdown," Mboweni said. He added that the South African economy had not escaped the impact of these developments, and domestic production had contracted as a result of weak domestic demand and a significant decline in export demand. "Against this backdrop of widening domestic and global... (Business Report, South Africa)
East European Rates Head to Record Lows as Central Banks Ignore Currencies Mar 20, 2009
Should the exchange-rate weakness become sustained, it would endanger reaching the inflation target, the Magyar Nemzeti Bank said in a statement on March 8, a day after the forint fell to a record low against the euro ... The Czech central banks mid-point inflation target is 3 percent this year and 2 percent next year. (Bloomberg -- Europe)
Iceland cuts base interest rate to 17 percent Mar 19, 2009
Sedlabanki said its current monetary policy is guided by the temporary objective of stabilizing the exchange rate, while the long-term goal remains the inflation target. Economists believe that the central bankers are keen to bring down interest rates to ease the heavy burden on the domestic economy, but they are constrained by capital controls aimed at supporting the krona. (International Herald Tribune -- Health)
A Better Ghana Needs A Better Budget Mar 13, 2009
With average inflation target of 15. 3%, this years budget will actually be smaller than last years. (Ghana Web, Ghana)
* PRC economic growth may fall to 6.5% Mar 10, 2009
China has set a full-year inflation target of 4 percent for this year. The last time the monthly CPI reading fell into negative territory was six years ago, when it slipped 0. (Taipei Times, Taiwan -- World Business)
China Consumer Prices Fall for First Time Since 2002 as Economy Falters Mar 10, 2009
Premier , who last week set a 4 percent inflation target for 2009, is relying on a surge in lending and a 4 trillion yuan ($585 billion) stimulus package to spark an economic recovery. Deflation, though a real concern, is expected to be a temporary phenomenon, said , head of China equities at JPMorgan Chase & Co. in Hong Kong. (Bloomberg -- Asia)
China CPI falls to minus 1.6% in Feb. Mar 10, 2009
China has set a full-year inflation target of 4 percent for 2009. China's monthly CPI, PPI in 2008. (Xinhuanet, China)
Budget For Presidency Up 163% Mar 9, 2009
3% average inflation target for 2009, Mr Mensah said, pointing out that the New Patriotic Party managed to increase income by 57. 8% from 2007 to 2008. (Ghana Web, Ghana)
PM Wen says China faces "unprecedented" challenges over crisis Mar 5, 2009
" onclick="Next();" src="/images/butt_next. The global financial crisis continues to spread and get worse," he said. "Demand continues to shrink on international markets. (Channelnewsasia.com)
No stopping house prices Mar 5, 2009
Consumer inflation is expected to ease to the upper limit of the inflation target by midyear and end the year at around 5. 4 percent. (iAfrica.com)
BoE cuts interest rates to 0.5 percent Mar 5, 2009
5 percentage point cut in rates would still leave leave a "substantial risk" of undershooting the bank's 2 percent inflation target in the medium term. "Accordingly, the committee also resolved to undertake further monetary actions, with the aim of boosting the supply of money and credit and thus raising the rate of growth of nominal spending to a level consistent with meeting the inflation target in the medium term," the bank said in a statement accompanying the rate decision. (Yahoo News)
Canada cuts rate to historic low Mar 4, 2009
The bank said it will continue to 'monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve its 2 per cent inflation target over the medium term. Read business stories in. (India Times)
Paul Krugman: What will stop the pain? Feb 21, 2009
Most press reports focused either on the Fed's downgrade of the near-term outlook or on its adoption of a long-run 2 percent inflation target. But my eye was caught by the following chilling passage (Yes, things are so bad that the summarized musings of central bankers can keep you up at night): "All participants anticipated that unemployment would remain substantially above its longer-run sustainable rate at the end of 2011, even absent further economic shocks; a few indicated that more than... (International Herald Tribune)
Fed cuts 2009 economic forecast Feb 19, 2009
The US Federal Reserve has cut its economic forecasts for 2009 and considered setting an inflation target, minutes from its meeting have shown. The central bank now expects a fall in output of between 0. (BBC News -- Americas)
Bank of England Governor meets Chancellor to discuss printing money Feb 19, 2009
The minutes revealed: "Increasing the supply of central bank money in the economy through additional purchases of government securities should raise private sector spending. "It seemed unlikely that the inflation target could be met solely by cutting Bank Rate. " The consumer prices index, the Government's preferred measure of inflation, dropped less than expected last month to 3 per cent, according to figures released by the Office for National Statistics. Economists said that two votes can be... (Telegraph.co.uk)
