Financial Regulation Overhaul Proposals in U.S.: Side-by-Side Comparison Nov 20, 2009
The central bank would be stripped of all bank supervisory power and relegated to setting only monetary policy. Dodd wipes out OCC and OTS and strips bank regulation from the FDIC, giving those powers to the new agency. (Bloomberg -- US)
Fed Makes Monitoring Capital Adequacy Foremost Concern Amid Talk of Bubble Nov 20, 2009
The U.S. shouldnt adjust monetary policy to account for rising Asian assets, Federal Reserve Bank of St. Louis President said Nov. 18. If there are problems in real- estate markets in Asia, it is not very practical to say you should raise interest rates in the U.S., he said. (Bloomberg -- US)
China Rebuffs Yuan Criticism as Zhou Says Government Is Passive on Dollar Nov 20, 2009
There are signs of recovery, we will continue to maintain the moderately loose monetary policy and expansionary fiscal policy for a while, Zhou said. But we should also be flexible. (Bloomberg -- US)
Bank of Japan defies govt in upbeat outlook Nov 20, 2009
"From the outside, it may seem like the BOJ is responding to government pressure, but I think people inside the BOJ understand the situation very well. Naoto Kan, minister in charge of the economy, said earlier today that the government thinks Japan is in deflation and that it would tell the central bank that, while Finance Minister Hirohisa Fujii said price trends were key to guiding policy. "Monetary policy is absolutely vital. It is like the lifeblood of the economy, so I want the BOJ to... (Sydney Morning Herald -- Business)
Audit the Fed, Now Nov 20, 2009
One puzzling assertion made by the Fed and its supporters is that the Federal Reserve has some sort of independence from the government and independence in undertaking monetary policy. Nothing could be further from the truth. (The American Conservative)
Geithner Under Fire on Economy... Nov 20, 2009
The Fed says the provision threatens its ability to make monetary policy without political interference ... Though many lawmakers insist they won't do anything to compromise the Fed's independence on monetary policy, the provision's momentum is substantial ... In an interview, former Fed Chairman Alan Greenspan said it would be "a major loss to the country if the Fed were incapable of running an independent monetary policy. If you have the GAO, after the fact, offering its opinions on whether a... (The Drudge Report)
Press Release: IMF Mission Reaches Staff-Level Agreement on Third Review Under Stand-By Arrangement with Belarus Nov 20, 2009
Monetary policy would continue to support the credibility of the exchange rate regime. Disciplined wage policy would improve Belarus s competitiveness and prospects for economic growth, as the global economy returns to growth. (IMF News)
Sub-Saharan Africa: Challenges for 2010, Remarks by Ms. Antoinette Sayeh, Director, African Department of the International Monetary Fund Nov 20, 2009
Inflation risks have remained subdued, allowing many countries to ease monetary policy. This hard-earned flexibility to ease policies should help to dampen the adverse impact of the crisis on poverty and social indicators. (IMF News)
Japan maintains super-low interest rates Nov 20, 2009
But Shirakawa denied there was a rift between the bank and the government over monetary policy, saying the BoJ shares its concern about deflation. "The government position ... does not differ from the views the Bank of Japan has shown before," he said. (Sydney Morning Herald -- World)
Eskom: who is in charge and what are they doing? Nov 20, 2009
Asked by another MP what the Bank of International Settlements was, Marcus patiently explained that it was like a central bank of all the central banks of the world, but when asked by a new MP, Tim Harris, whether sharp interest rate hikes previously imposed by the bank's monetary policy committee had worsened the recession, she gave him short shrift. She said she "would not like to comment on that. (It is) not appropriate at all". (Business Report, South Africa)
Is the Fed Creating New Bubbles? Nov 20, 2009
America's super-easy monetary policy has drawn a blast of criticism lately from the high and mighty of Asian finance ... During Obama's recent Asian swing, China Banking Regulatory Commission Chairman Liu Mingkang warned that U.S. monetary policy is creating "new, real, and insurmountable risks to the recovery of the global economy, especially emerging-market economies." Bank of Japan Governor Masaaki Shirakawa and Hong Kong Chief Executive Donald Tsang issued similar warnings ... On Nov. 16,... (BusinessWeek)
Japan's Bonds Gain a Second Week on Outlook for Interest Rates, Deflation Nov 20, 2009
The government will tell the central bank that monetary policy plays a significant role in fighting deflation, he said. The BOJ can buy more bonds to help combat deflation as the purchases would provide more liquidity and push up price expectations, , secretary general of the Organization for Economic Cooperation, said in Tokyo yesterday. (Bloomberg -- Japan)
Australia Should Increase Interest Rates as Growth Accelerates, OECD Says Nov 20, 2009
Current economic trends and the reduction in negative macroeconomic risks argue in favor of a gradual tightening of monetary policy, it said. Stevens raised the overnight cash rate target in October and November, becoming the first policy maker in the world to increase borrowing costs twice this year. (Bloomberg -- Australia & New Zealand)
Gross Says China Has Own Bubble to Face as Exports Fail to Find Consumers Nov 20, 2009
China may abandon its dollar peg within six months time and with it, its own easy monetary policy that has fostered more significant mini-bubbles of lending and asset appreciation on the Chinese mainland, he added. China has kept its currency at about 6. (Bloomberg -- Asia)
Malaysia's Economic Slump Probably Eased Last Quarter on Exports, Stimulus Nov 20, 2009
Zeti said last week monetary policy now will continue to be focused on supporting the domestic demand, adding that the current interest rates are appropriate ... Given that the government is scaling back public-sector spending next year and wants to sustain the recovery momentum via private-sector spending, we expect monetary policy to support this next leg of the recovery process, said , the chief economist at Maybank Investment Bank Bhd. (Bloomberg -- Asia)
* Perng warns on currency speculation Nov 20, 2009
The central bank chief backed Premier Wu Den-yihs (dq) call that the government should not use any fiscal or monetary policy to curb the boom in the local property market. Perng denied he had tried to pressure several banks during a tea meeting with their executives, dismissing media reports that he had asked the banks to avoid over-lending as it could fuel property speculation. (Taipei Times, Taiwan -- World)
* Standard forecasts a U-shaped recovery Nov 20, 2009
Given the forecast relatively weaker recovery in Taiwans economy, it would be a necessary approach for Taiwans central bank to keep its loose monetary policy to help drive economic growth, Phoo said. The nations central bank may extend its long-drawn loose monetary policy in the next few quarters by keeping the key rediscount rate at a record low of 1. (Taipei Times, Taiwan -- World)
SARB's power warning Nov 20, 2009
Deputy Reserve Bank governor Brian Kahn told Parliament's portfolio committee on finance the bank's central projection, made in its twice yearly monetary policy review released this week, would see inflation dipping below the six percent mark next year to 5 ... The Reserve Bank's monetary policy committee said on Wednesday it was cause for concern that the inflation forecast remained so close to six percent that relatively small shocks could see another breach in the top end of the target band. (iAfrica.com)
To fix, or not to fix Nov 20, 2009
This question has arisen even more frequently since the SA Reserve Bank left the rates unchanged at the last Monetary Policy meeting. This gave some market watchers the impression that the bottom of the rate cycle is not far off although many expect one more 50 basis point drop before the rates once again start their upward climb. (iAfrica.com)
Gold set to hit new high on inflation hedge Nov 20, 2009
"There is a preference for real assets at a time when a monetary policy experiment continues," he said ... "With unemployment still rising (and) the economy still relatively fragile, it will be interesting to observe how central banks react." Such a question mark over the outlook for monetary policy is creating jitters over the stability of the market for paper currencies, he said ... "We are in a period when there is a greater uncertainty about the conduct of monetary policy globally," he said.... (India Times)
Singapore Economy May Expand 3%-5% in 2010 After Emerging From Recession Nov 19, 2009
and India have started to tighten monetary policy and Singapore said today it will gradually pull back stimulus measures as the world economy revives. The islands outlook for 2010 is closely linked to global conditions and a sluggish recovery in demand for exports by companies such as Stats Chippac Ltd. will moderate growth prospects, the ministry said. (Bloomberg -- Asia)
Japan May Declare Economy Is in Deflation, Boosting Bonds, Citigroup Says Nov 19, 2009
The declaration would encourage the Bank of Japan to extend measures to ease monetary policy, said , chief strategist at Citigroup Global in Tokyo. The domestic demand deflator, a measure of prices that excludes imports, fell the most since 1958, Cabinet Office figures showed this week. (Bloomberg -- Asia)
Marcus gets it right Nov 19, 2009
These comments followed Marcus's first repo announcement on Tuesday, in which the Monetary Policy Committee (MPC) kept rates unchanged ... The market could have further opportunities to hear from Marcus this evening [17:30] at the Monetary Policy Review press conference and then when she appears before parliament. (iAfrica.com)
Lower Pound No Cure-All for U.K. Economy Nov 19, 2009
Indeed, minutes from the November meeting of the BoE's Monetary Policy Committee noted past sterling depreciation as one of the main reasons to expect an economic recovery. While little hard evidence of an export revival is currently available, there have been some tentative signs of improvement to U.K. trade balances over the past few months. (BusinessWeek)
SA falls behind Nov 19, 2009
The recovery in the South African economy appears to be lagging behind that of the global economy, the South African Reserve Bank said in its November Monetary Policy Review on Wednesday ... "By adopting a forward-looking flexible approach, the Monetary Policy Committee was able to provide some stimulus to the slowing economy, while maintaining the focus on its price stability objective," the Sarb said ... Even though some risks to the inflation outlook remained, the current monetary policy... (iAfrica.com)
Competition to Limit Mortgage Costs for Home Buyers, RBA's Debelle Says Nov 19, 2009
Debelle, who heads the central banks financial markets division, didnt address monetary policy. To contact the reporter for this story: in Sydney at. (Bloomberg -- Australia & New Zealand)
New Zealand Opposition Labour Party Drops Support for Central Bank Policy Nov 19, 2009
Goffs comments lack detail and appear to be threatening a monetary policy framework that is working, said , senior economist at Bank of New Zealand Ltd. in Wellington ... What were seeing is a scenario where monetary policy is getting a few mates. (Bloomberg -- Australia & New Zealand)
Govt initiates policies to maintain macro-economic stability for growth Nov 19, 2009
He said Government's monetary policy would continue to focus on stabilising price and exchange rate expectations. "Over the medium term, non-oil real GDP growth has been projected at eight per cent, while the overall budget deficit is to reduce to three per cent of GDP, which is driven by reduction in low-priority public spending and re-allocation of resources to priority areas," he said. (Ghana Web, Ghana)
Bank split over stimulus package Nov 19, 2009
Seven of the nine members of the Monetary Policy Committee (MPC) voted for the 25bn extension, one voted for a higher amount and one for no change. The members were, however, unanimous in the decision to keep interest rates at a record low of 0. (BBC News -- Business)
"With Six You Get Eggroll" Nov 19, 2009
Or that on the eve of a visit by an American president, Barack Obama, China's top finance officials would be lecturing the U.S. about its unbridled spending and ill-advised monetary policy. To be sure, Obama didn't create this mess. (Townhall.com)
Lawmakers seek Fed audit after critical AIG report Nov 19, 2009
They contend the Fed already is accountable except in the narrow area of monetary policy. Copyright 2009 Globe Newspaper Company. (Boston Globe)
China Regulator Blames Bubble on U.S. Nov 19, 2009
China, meanwhile, has kept its own monetary policy loose, fueling concerns that assets bubbles are swelling there. The United States wants China to strengthen its currency as well, as a weaker yuan encourages more imports from China and widens U.S. deficits. (Newsmax)
Summit shows U.S., China more on equal footing Nov 19, 2009
For Obama, he not only didn't get that, but not one notable shift by the Chinese toward U.S. positions in key areas such as climate, nuclear challenges in Iran and North Korea, human rights or monetary policy. The joint statement that Obama and Hu issued was the broadest of its kind in 30 years of formal relations. (San Francisco Chronicle)
Fed Regional Presidents, Lawmakers Step Up Clash Over Appointment Process Nov 19, 2009
The boards of directors of each Fed bank select the president, who votes on monetary policy and is approved by Fed governors in Washington ... So you want the input from around the country, and I think its really important for informing monetary policy. (Bloomberg -- US)
China Investors Open More Stock Accounts on Rally, Yuan Appreciation Bets Nov 18, 2009
The has rallied 19 percent this quarter, the second-best performer among 89 global benchmark indexes tracked by Bloomberg, as the nations economy strengthened and the government said it will continue a moderately loose monetary policy. The gauge, which tracks A and B shares on the citys exchange, added 0. (Bloomberg -- Asia)
PBOC's Fan warns of asset bubbles Nov 18, 2009
HONG KONG: China needs to be alert to the danger of asset bubbles, but headline inflation is unlikely to be a risk for some time, Fan Gang, a member of the People's Bank of China's monetary policy committee, said ... His warning of potential asset bubbles builds on sting 00004000 ing criticism of ultra-loose US monetary policy by Chinese banking regulator Liu Mingkang ... Economists say the risk of asset price bubbles is especially acute in economies such as Hong Kong and China, which... (India Times)
Yellen Echoes Bernanke: Recession Likely Over Nov 18, 2009
"We have more than enough tools to tighten monetary policy when the right time comes," Yellen said. "We are confident that what we have now will get the economy moving again. We don't have a plan B," she added. (SmartMoney)
Central bank leaves repo rate steady at 7.0 pct Nov 18, 2009
Under new Governor Gill Marcus, the central bank's monetary policy committee kept the cautionary stance it had adopted under previous Governor Tito Mboweni, leaving the repo rate steady for the third meeting in a row ... Some analysts had suggested the committee may cut again after an alliance of the ruling party and its left wing allies called on Sunday for a broader monetary policy mandate taking into account growth and job creation. (Business Report, South Africa)
Reserve Bank will not weaken rand Nov 18, 2009
"There is no way the bank will intervene to achieve a certain exchange rate. That would be inappropriate," she said at a press conference after announcing the decision of the monetary policy committee (MPC) to keep the bank's repo rate at 7 percent. The repo rate has been cut by 5 percentage points since December, after a similar hike between June 2006 and last June. (Business Report, South Africa)
Dollar carry trade Nov 18, 2009
Just hours before , the countrys chief banking regulator said the US was fuelling speculative investments and endangering global recovery through loose monetary policy. Hours after the president landed, Ben Bernanke, US Federal Reserve chairman, said he did not think new asset price bubbles were forming in the US. Who is right. (FT.com -- Markets)
Japanese 20-Year Bonds Little Changed Before Tomorrow's $12.3 Billion Sale Nov 18, 2009
The Bank of Japan will pursue easy monetary policy for a while. . (Bloomberg -- Japan)
China Faces Dangers of Asset Bubbles as Economy Expands, PBOC Adviser Says Nov 18, 2009
A double-digit economic growth rate wouldnt be good for China, Fan, the academic member of the Peoples Bank of Chinas monetary policy committee, told property developers at the Hong Kong conference ... China should maintain a moderately loose monetary policy next year as government stimulus wanes and private investment and external demand remain weak, the State Information Center said Nov. 16. (Bloomberg -- Asia)
Brazil Choice of Central Bank Director `Surprising' to Vieira da Cunha Nov 18, 2009
Nov. 17 (Bloomberg) -- Brazilian central bank President made a surprising choice in naming a new monetary policy director and may have been influenced by political considerations, a former central banker said ... Meirelles, 64, named , a former executive at state-controlled Banco do Brasil SA, as monetary policy director last night after resigned from the post, citing personal reasons. (Bloomberg -- Latin America)
Brazilian Finance Ministry Says Valor Story on Mantega Included a `Lie' Nov 18, 2009
who disclosed some details to Valor about how policy makers managed the global crisis, stepped down yesterday as the central banks director of monetary policy. Bank President has recommended President Lula nominate economist as his replacement. (Bloomberg -- Latin America)
Analysis: Obama's China Trip Shows Power Shifting Nov 18, 2009
For Obama, he not only didn't get that, but not one notable shift by the Chinese toward U.S. positions in key areas such as climate, nuclear challenges in Iran and North Korea, human rights or monetary policy. For Obama, going back home from a weeklong Asia trip with little more than hopes that he's laying groundwork for better cooperation could sour, fast, on Americans. (CBS News)
Doomed to repeat history? Nov 18, 2009
Monetary policy will fail if consumers wont borrow at any price. EDITORS CHOICE. (FT.com -- Markets)
Waiting for thetrain wreck Nov 18, 2009
When investors lose trust in conventional currencies, because monetary policy appears set to debauch them, gold is the immediately available safe haven ... Hence, a $5,000 gold price is possible though not certain, if present monetary policy is continued or only modestly modified - and that price could be reached by the end of 2010. (Asia Times Online)
Japan doomsdayfears premature Nov 18, 2009
Thus the Japanese economy is burdened with relatively high real interest rates that monetary policy cannot fix since it is not, in practical terms, possible to cut interest rates below zero. The population is aging. (Asia Times Online)
The Better Ghana Agenda: So Far, So Better Nov 18, 2009
According to the Monetary Policy Committee report for the third quarter of the year, the cedi is gaining stability; an indication that the effects of both monetary and fiscal policies are beginning to take hold. The latest surveys show more positive assessment of the general macroeconomic outlook; and a rebound in both business and consumer confidence, with some downward revision of inflation expectations. (Ghana Web, Ghana)
UK inflation rate starts to rise Nov 18, 2009
"I don't think this is anything that will worry the Monetary Policy Committee [of the Bank of England] too much," said Amit Kara at UBS.. "The MPC has highlighted that inflation is going to be very volatile in the near term.". (BBC News -- Business)
Rates in a stale position Nov 18, 2009
"The Monetary Policy Committee (MPC), having reviewed the global and domestic economic and financial developments, has decided to maintain the current stance of monetary policy and to leave the repurchase rate unchanged at seven percent per annum," newly-appointed governor Gill Marcus said ... Marcus said that while South Africa had experienced a recession, it had narrowly avoided a depression due to the fiscal and monetary policy measures in place. (iAfrica.com)
China says Fed policy threatens global recovery Nov 17, 2009
The US Federal Reserve is fuelling speculative investments and endangering global recovery through loose monetary policy, a senior Chinese official warned on Sunday just hours before President Barack Obama arrived in China for his first visit. Chinas chief banking regulator, said that the combination of a weak dollar and low interest rates had encouraged a that was having a massive impact on global asset prices. (FT.com -- Markets)
South Korea's recovery: Leaning experience Nov 17, 2009
But monetary policy is a blunt instrument ... An alternative is to micromanage the housing market by using unconventional means instead of monetary policy. (The Economist)
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with the Dominican Republic Nov 17, 2009
The program is expected to catalyze financing from multilaterals for the conduct of a countercyclical fiscal policy in the short term, while monetary policy will remain flexible to respond to the liquidity needs of the economy ... Directors welcomed the flexible implementation of monetary policy, with a timely shift to an accommodative stance in 2009 to stimulate economic activity. (IMF News)
Meirelles Taps Mendes to Replace Toros as Director at Brazil Central Bank Nov 17, 2009
Nov. 17 (Bloomberg) -- Brazils central bank President tapped to be the countrys director of monetary policy after resigned last night for personal reasons. The departure of Toros, 46, comes two months after Meirelles joined the government-aligned Brazilian Democratic Movement Party in his home state of Goias. (Bloomberg -- Latin America)
Bernanke: uncertainty in economic recovery Nov 17, 2009
"Of course, significant changes in economic conditions or the economic outlook would change the outlook for policy as well. We have a wide range of tools for removing monetary policy accommodation when the economic outlook requires us to do so, and we will calibrate the timing and pace of any future tightening to best foster maximum employment and price stability," he added. Special Report. (Xinhuanet, China)
Bernanke Walks Fine Line on Rates, Dollar Nov 17, 2009
The Fed repeatedly refuses to grant congressional oversight of their monetary policy to the congress, thereby nullifying their powers as a quasi governmental institution ... It's time we end the control of our monetary policy by elite offshore bankers and Goldman Sachs. (CBS News)
Will Beijing strengthen yuan? Nov 17, 2009
The central bank's third-quarter monetary policy report omitted a phrase promising to keep the renminbi "basically stable" and added it would consider other major currencies, not just the dollar, in guiding the exchange rate of the renminbi. China allowed a near-20 per cent appreciation of the renminbi between July 2005 and June 2008, but re-pegged to the dollar last year to protect its exporters as the financial crisis intensified. (CNN -- International)
Rand firms in face of substantial interest rate cuts Nov 17, 2009
While critics of monetary policy continue to call for sharp interest rate cuts and lobby for a weaker rand, the unit has firmed this year in the face of a 5 percentage point cut in interest rates ... The ANC alliance partners - trade union federation Cosatu and the SA Communist Party - have led the campaign for a more accommodative monetary policy - a stand that has support among exporters, who are battling to remain competitive on global markets because of rand strength ... The first meeting of... (Business Report, South Africa)
Bubble Trouble: Why Real Estate Is China's Biggest Headache Nov 17, 2009
There is clearly a link between Beijing's ultra-loose monetary policy and the run-up in property prices ... The more prices rise, the more pressure China's central bankers come under to tighten up monetary policy and curtail credit. (Time.com)
New central bank chief should focus on demand Nov 17, 2009
Despite the very weak state of the economy, the Reserve Bank's monetary policy committee found reasons at its last two meetings not to lower interest rates or to ease quantitatively ... Marcus would do well to recognise these difficulties for the practice of monetary policy in South Africa. (Business Report, South Africa)
READ: Bernanke's speech Nov 17, 2009
We have a wide range of tools for removing monetary policy accommodation when the economic outlook requires us to do so, and we will calibrate the timing and pace of any future tightening to best foster maximum employment and price stability. Footnotes. (USA Today -- Money)
Fed Eyes Dollar Drop, but Hews to Low-Rate Pledge Nov 17, 2009
"Bernanke just locked the Fed into an easy monetary policy, at least in the short term, so any implicit threat of response to dollar declines simply has zero credibility," said Stephen Stanley, U.S. economist at RBS.. Fed officials usually defer to the U.S. Treasury Secretary on issues relating to the dollar's value, although Bernanke has commented on the currency in the past. (ABC News -- Wire)
FY10 GDP at 6%: RBI analyst survey Nov 17, 2009
The RBI in its mid-term monetary policy review had kept its GDP projection for the current fiscal unchanged at 6. 0 per cent but had increased inflation target to 6. (India Times)
Bernanke Signals `Extended Period' May Be Even Longer as Joblessness Rises Nov 17, 2009
Bernanke just locked the Fed into an easy monetary policy, at least in the short term, so any implicit threat of response to dollar declines simply has zero credibility ... When Bernanke testified before Congress for two days in July for the Feds semiannual report on monetary policy, he elaborated on the central banks plans to unwind its unprecedented monetary stimulus, including raising interest rates from almost zero. (Bloomberg -- US)
