U.S. dollar falls as Eurozone exits recession Nov 14, 2009
The Asia-Pacific Economic Cooperation (APEC) finance ministers who met in Singapore on Thursday promised to undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals, according to a joint statement. The dollar strengthened on Thursday amidst the APEC statement and a report showing that U.S. oil inventories had jumped. (Xinhuanet, China)
APEC leaders warn of protectionism Nov 14, 2009
China also signed an APEC finance ministers statement on Thursday that promised "monetary policies consistent with price stability in the context of market-oriented exchange rates", but other APEC members downplayed the likelihood that China would significantly change its policies anytime soon. CONTINUING STIMULUS POLICIES. (India Times)
Fed limits debit, ATM overdraft fees Nov 14, 2009
The Fed's mission, originally defined as promoting full employment and maintaining price stability, was expanded to consumer protection in the 1960s when Congress tapped it to oversee enforcement of the landmark Truth in Lending Act. The central bank was further given the authority to write rules governing home lending in 1994 but never did so until last year, after the collapse of the mortgage and housing markets had occurred. (Honolulu Advertiser)
Coordination needed to unwind stimulus Nov 14, 2009
They vowed, in a joint statement, to undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals. New Zealand Prime Minister John Key told broadcaster CNBC yesterday that the private sector needed to take over the stimulus role from governments as soon as possible. (The Star Online, Malaysia -- Business)
* APEC endorses market-oriented cure Nov 13, 2009
In a statement they agreed to undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals. The group includes China, which has effectively pegged its currency against the dollar since the middle of last year to help fend off the global downturn. (Taipei Times, Taiwan -- World)
Apec dodges issue of yuan weakness Nov 13, 2009
"We will undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals.". Alvin Liew, an economist at Standard Chartered, said: "Nobody will be hoping for a big bang approach where you get a significant appreciation of the Chinese currency.". (Business Report, South Africa)
Dollar rises against most major currencies Nov 13, 2009
APEC finance ministers who met in Singapore on Thursday promised to undertake monetary policies consistent with price stability in the context of market oriented exchange rates that reflect underlying economic fundamentals, according to a joint statement. The Energy Information Administration (EIA) of U.S. Department of Energy reported a jump of 1. (Xinhuanet, China)
APEC to Back "Market-Oriented" Currencies Nov 12, 2009
"We will undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals," the draft said. U.S. President Barack Obama told Reuters in an interview this week that he would raise the currency issue on a visit to China next week. (ABC News -- Business)
Economic growth strategies must be holistic - Dr Abbey Nov 12, 2009
However, Dr Abbey recommended that "price stability, fiscal discipline, and policy credibility are the key factors for success." "Uncertainty causes economic inefficiency because the allocation of invisible funds can be optimal only if all agents correctly estimate the same real rate of interest in making their decisions involving the allocation of their resources," he said. Another means of remedying inflationary rates Dr. Abbey said was raising real deposit rate close to their competitive... (Ghana Web, Ghana)
APEC ministers reject early stimulus end Nov 12, 2009
"We will undertake monetary policies consistent with price stability in the context of market-oriented exchange rates that reflect underlying economic fundamentals," ministers said in a statement. 2009. (Sydney Morning Herald -- World)
Fed's Fisher Says U.S. Economic Growth Likely to be `Suboptimal' into 2011 Nov 11, 2009
Until the time comes to raise interest rates, we need to provide the monetary accommodation necessary to spur job creation and prevent inflation from falling any further below rates that are consistent with price stability, Yellen said in a speech in Phoenix. Richmond Fed President said yesterday in an interview with CNBC that U.S. consumer spending should rise at a modest pace in coming months and problems in commercial real estate should be manageable for banks. (Bloomberg -- US)
Fed Officials Say Recovery Will Be Slow as Unemployment Hampers Spending Nov 11, 2009
Until that time comes though, we need to provide the monetary accommodation necessary to spur job creation and prevent inflation from falling any further below rates that are consistent with price stability ... The Feds preferred measure of inflation, the personal consumption expenditures price index minus food and energy, is rising at a level thats below the 2 percent regarded as consistent with price stability, Yellen said. (Bloomberg)
Nigeria: Meeting Over Deregulation Deadlocked Nov 11, 2009
We should ultimately take steps that would encourage this," he added. Speaking at the parley, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Mohammed Barkindo, disclosed that an expected outcome of the deregulation policy is a capture of 50 per cent of the consumer market share of petroleum products by the corporation in the next three years. This, it said, would ensure that Nigerians are assured of the availability of petroleum products even in... (allAfrica.com)
Rising inflation threat seen in South Asia Nov 11, 2009
" In the third quarter of 2009, inflation in South Asia, which aside from the Maldives comprises India, Pakistan, Nepal, Bangladesh, Afghanistan, Sri Lanka and Bhutan, hit an average 10.9 percent, the World Bank said. It compares with just 2.9 percent in Latin America and the Caribbean. "From the price stability perspective the most worrying situation is that of the Maldives," Cardoso, the bank's chief economist for the South Asian region, wrote on the "World Bank's End Poverty in South Asia"... (Channelnewsasia.com)
Falling home prices hit harder in certain areas Nov 10, 2009
Lyon said much of the price stability in the tonier neighborhoods comes from the overall desirability of schools, aesthetics and tradition. But areas where borrowers sapped equity from their homes through refinances are experiencing the same problems as newly built areas. (Sacramento Business Journal, CA)
G20 to maintain support for global recovery Nov 8, 2009
"Our first challenge in using the Framework will be the transition from crisis response to stronger, more sustainable and balanced growth, consistent with our goals of sustainable public finances; price stability; stable, efficient and resilient financial systems; employment creation; and poverty reduction", said the communique. St ANDREWS, Britain, Nov. 7 (Xinhua) -- The G20 policymakers urged to push forward climate change financing but failed to reach an agreement on how to fund policies to... (Xinhuanet, China)
ECB, BoE hold interest rates at record lows Nov 6, 2009
He underscored ECB concern over governmental policy by stressing that "high public deficits and debts may complicate the task of the single monetary policy to maintain price stability.". Elsewhere, the Icelandic central bank said Thursday it would cut its rate by one percentage point to 11 percent, after Norway unveiled a rate hike last week. (Yahoo! Asia News)
Fed holds key interest rate near zero Nov 5, 2009
On Wednesday, the Fed said it continues to "anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability.". The U.S. economy rose at a pace of 3. (Xinhuanet, China)
Fed holds low rates to support fragile recovery Nov 5, 2009
"In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability," the committee said. Brian Bethune, chief US financial economist at IHS Global Insight, said that despite the FOMC's aggressive stance on monetary policy, "overall the credit markets are not functioning.". (Yahoo! Asia News)
Fed Reserve holds rates, says economy picking up Nov 5, 2009
" While businesses were still cutting back on fixed investment and staffing, albeit at a slower pace, the central bank said they were making "progress" in aligning inventory with sales. "The committee anticipates that policy actions to stabilise financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilisation in a context of price stability ... " "In these... (Channelnewsasia.com)
Philippine Central Bank Keeps Interest Rates at Record Low to Spur Growth Nov 5, 2009
They dont want to sound hawkish but on the other hand, they have to slowly phase in that there is increasing but not overwhelming price stability issues as we head into 2010. . (Bloomberg -- Asia)
Bernankeism - the artof spreading starvation Nov 5, 2009
Bernanke and his supporters have already announced strong recovery in the US and around the world and see the above indicators as a sign of strong recovery in perfect price stability. For Bernanke and supporters, inflation does not exist; it was something from the distant past. (Asia Times Online)
Ontario to Offer Basic Auto Insurance to Lower Rates, Minister Duncan Says Nov 3, 2009
This balanced set of reform lays the foundation for an auto insurance system with greater price stability, Duncan said on the governments. Drivers can choose coverage that provides them with the protection they need based on their own preferences and circumstances. (Bloomberg -- Canada)
Petroleum Products Pricing In Ghana Economics Or Politics? Oct 30, 2009
Product price stability is good both for planning by businesses and checking the inflationary effect of crude oil price volatility. Crude volatility can also be checked through sound exchange rate management. (Ghana Web, Ghana)
Public Information Notice: IMF Executive Board Concludes Article IV Consultation with Nigeria Oct 29, 2009
Directors emphasized that consistent implementation of a clearly articulated monetary policy framework, focused on price stability and based on the relationship between monetary aggregates and inflation, is needed to anchor inflation expectations and establish credibility ... Directors supported the increased flexibility of the exchange rate in recent months, which will support the implementation of monetary policy focused on price stability. (IMF News)
Nigeria: Economy to Recover Next Year, Says IMF Oct 29, 2009
The Fund urged the authorities to implement a clearly articulated monetary policy framework focused on price stability ... They supported the increased flexibility of the exchange rate in recent months, saying it would support the implementation of monetary policy focused on price stability. (allAfrica.com)
RBI leaves key rates unchanged Oct 27, 2009
"As always the Reserve Bank will endeavour to ensure price stability and anchor inflation expectations," the central bank said. Also Read. (India Times)
India's central bank holds rates Oct 27, 2009
"The precise challenge which the bank faces is to support the recovery process without compromising on price stability," Reserve Bank of India governor Duvvuri Subbarao said in the statement. The repo, the rate at which the central bank lends to commercial banks, was kept at 4. (Sydney Morning Herald -- World)
Mortgage madness Oct 27, 2009
The Fed's dual mandate - price stability and full employment - certainly provides good cover for sticking with ultra-loose monetary policy. Besides, few see meaningful risk inherent with Fed policymaking anyway. (Asia Times Online)
India's central bank holds interest rates Oct 27, 2009
" onclick="Next();" src="/images/butt_next (Channelnewsasia.com)
Central banks fret over asset bubbles Oct 26, 2009
The European Central Bank is studying asset prices as it reviews what to include when monitoring developments in money and credit growth as part of an assessment of the risks to price stability. Experience and developments in the literature appear to support a shift in favor of the adoption of some form of leaning against the wind,'' President Jean-Claude Trichet said Aug. 22, adding he doubted it could be done in a ``mechanical way. (Sydney Morning Herald -- Business)
* The almighty US dollar escapes death once again Oct 25, 2009
Once the episode of zero interest rates ends, the US Federal Reserve will be anxious to reassert its commitment to price stability. There may be a temptation to inflate away debt held by foreigners, but the fact is that the majority of US debt is held by Americans, who would constitute a strong constituency opposing the policy. (Taipei Times, Taiwan -- Sports)
Interfor's Results Improve in 3rd Quarter Oct 23, 2009
Extensive industry curtailments in all regions generated some price stability, with year-to-date highs in lumber prices reached in August, 2009, but still significantly lower than lumber prices in the corresponding period of 2008. The average price of SPF #2&Btr 2x4 for August, 2009 reached a high for 2009 at US$200 per mfbm, still well below the 2008 high of US$280 per mfbm price reached in August, 2008. (CCNMatthews Press Releases)
EU unlikely to fall back into recession Oct 23, 2009
He also said there were no risks to price stability in the policy-relevant medium-term horizon ... The ECBs exit and monetary policy stance was determined by risks-to-price stability, Weber said, but added inflation was not a concern right now ... Risks-to-price stability. (The Star Online, Malaysia -- Business)
German Bonds Little Changed as Signs of Recovery Sap Fixed-Income Demand Oct 22, 2009
ECB policy is determined by risks to price stability, which are fortunately currently not present, Weber, who heads Germanys Bundesbank, said in a speech in Jerusalem. Given the macroeconomic outlook, there is surely no need to rush for the exit at the current juncture. (Bloomberg -- Germany)
Impact of the Global Financial Crisis and Its Implications for the East Asian Economy, Keynote Speech by Mr. Takatoshi Kato, Deputy Managing Director, International Monetary Fund, At the Korea International Financial Association, First International Conference Oct 22, 2009
Again, putting central banks explicitly in charge of financial stability or, more directly, asset price stability may lead to confusion about commitment to inflation fighting. Also, monetary policy is a rather blunt tool and the first line of defense should always be prudential regulation. (IMF News)
Parliament: Dealers cannot sell fuel at lower prices Oct 21, 2009
She said the APM was implemented to ensure price stability, control inflation and provide an assurance of profitability to fuel companies and petrol dealers. The APM means that dealers cannot decide fuel prices on their own, or consumers will have to pay different prices at different petrol stations. (The Star Online, Malaysia -- News)
Are we better off with a stronger ringgit? Oct 21, 2009
As an open economy, the central banks key focus is price stability and the ringgits recent movement reflected this. In the short term, economists said the prospect of a stronger currency would only fuel speculative investment. (The Star Online, Malaysia -- Business)
Profile: President Yudhoyono Oct 20, 2009
Mr Yudhoyono has also overseen cash handouts to millions of Indonesia's poor, and restored the country's rice self-sufficiency for the first time in two decades - ensuring price stability for the staple crop. He is also credited with spearheading a crackdown by the independent Corruption Eradication Commission, or KPK, that has seen several high-profile figures prosecuted, including a relative of Mr Yudhoyono. (BBC News -- Asia-Pacific)
Minutes show Bank of Japan still worried about economy Oct 19, 2009
The Bank of Japan's monthly monetary policy meeting is held in Tokyo to decide the best ways for Japan to maintain price stability and keep markets and the economy from changing dramatically. Special Report. (Xinhuanet, China)
Bernanke Frets Over Sherlock Holmes's Next Stop: Caroline Baum Oct 19, 2009
The Fed, in turn, is waiting for us to do something so it can decide what to do: either raise the volume on its anti- inflation rhetoric with talk of exit strategies and price stability; or talk softly to allay fears of premature rate increases to keep market rates from rising. This is hard enough for your average MBA graduate on Wall Street to understand. (Bloomberg -- Columnists)
German Two-Year Notes on Track for Weekly Drop as Stocks' Rise Saps Demand Oct 17, 2009
A monetary policy which has price stability as its primary objective is a necessary condition for avoiding asset- price bubbles and promoting financial stability, Bini Smaghi said in a speech in Freiburg, Germany. German government bonds earned investors 1. (Bloomberg -- Germany)
Call Bernanke to Account Oct 15, 2009
Without such an understanding, it is impossible to know whether Chairman Bernanke is fit to serve another term and fulfill the Federal Reserve's dual mandate to ensure price stability and full employment. A list of said documentation is enumerated below. (The American Conservative)
T T RAM MOHAN: How to respond to asset bubbles Oct 15, 2009
And does it make sense for central banks to have financial stability as an objective in addition to the traditional objective of price stability. The IMFs World Economic Outlook (October 2009) sheds light on these questions. (India Times)
Strong words, less action from RBI Oct 15, 2009
As the guardian of price stability, Subbarao has adopted a more hawkish tone. Last week he said there was broad consensus India needed to step back from its easy policy, but he has given himself room to manoeuvre by pointing out the dangers both of moving too quickly and too slowly. (India Times)
Fed’s Kohn says growth, inflation lag behind goals Oct 14, 2009
And we must act well before demand pressures or inflation expectations threaten price stability. Fed officials unanimously decided at their Sept. 22-23 meeting to keep the benchmark interest rate near zero and repeated their pledge to keep rates low for an extended period. (Boston Globe)
Exhibit teaches peace of mind Oct 13, 2009
Hawkins is also a student assistant for the Center for Full Employment and Price Stability in the UMKC Economics Department. LaClaire is a former UMKC student. (University News, MO)
Economic outlook: Risks of inflation and deflation Oct 12, 2009
Rising and falling government bond yields reflect investors uncertainty over whether inflation or deflation is the threat to fear for price stability. This weeks data should provide fuel for both sides of that debate. (FT.com -- Markets)
Why Are So Many CEOs Suddenly Environmentalists? Oct 11, 2009
Enterprise has a significant presence in the United Kingdom, where high gas taxes provide price stability without killing the market. "Our vehicles there are smaller; they're more likely to be manual," Taylor says. (Slate)
Bernanke: tighter policies as economy heals Oct 9, 2009
"We will calibrate the timing and pace of any future tightening, together with the mix of tools, to best foster our dual objectives of maximum employment and price stability," Bernanke noted. The Federal Reserve has slashed interest rates to record-low levels close to zero, and has bought all manner of mortgages assets and other securities from financial institutions. (Xinhuanet, China)
ECB: No Rate Hikes Imminent Oct 9, 2009
The ECB sees inflation expectations "firmly anchored" in line with its aim of "keeping inflation rates below but close to 2%," and the important first paragraph of the statement also says that the monetary analysis confirms the "assessment of low inflationary pressure over the medium term," so that "price stability should be maintained over the medium term.". This introductory statement was clearly more optimistic on the growth outlook than the August statement and the comments confirm that... (BusinessWeek)
US Fed to tighten policy when outlook improves Oct 9, 2009
"We will calibrate the timing and pace of any future tightening, together with the mix of tools, to best foster our dual objectives of maximum employment and price stability," Bernanke said as he outlined the Fed's "exit strategy.". "My colleagues at the Federal Reserve and I believe that accommodative policies will likely be warranted for an extended period. "At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation... (Yahoo! Asia News)
US Fed sees no rush to increase interest rates Oct 9, 2009
"We will calibrate the timing and pace of any future tightening, together with the mix of tools to best foster our dual objectives of maximum employment and price stability," he added. It's sure to be a high-wire act for the Fed. (The Star Online, Malaysia -- Business)
Indonesia to focus on markets for post quake recovery Oct 7, 2009
Therefore, the Trade Ministry is seeking alternative strips to recover goods supply to keep price stability. A 7. (Xinhuanet, China)
Geithner Warns of 'Possible Hazards': Report Oct 7, 2009
"This will give us some direct responsibilities. We have to work hard to maintain confidence, and the Federal Reserve must defend price stability," he added. Geithner also forecast "changes" in major economies following the global financial crisis. (Newsmax)
Fed's Dudley Signals Concern About Risks of Slower Increase in U.S. Prices Oct 6, 2009
The desired policy outcome is a robust recovery in the context of price stability, Dudley, 56, who serves as vice chairman of the Feds rate-setting Open Market Committee, said at Fordham Law School. He dismissed concerns by some investors that the Feds expanded balance sheet will stoke inflation, saying such views are not well founded. (Bloomberg -- US)
High prices fail to dampen gold rush Oct 5, 2009
According to Varun Chawla, owner of Nathumal Jewellers in South Extension part I, this recent price stability has given confidence to the buyers. Chawla said, The market sentiment has got better in the past two months. (India Times)
Fed Needs Goldilocks for Roach Motel Check-Out Oct 5, 2009
Yes, the Fed wants to do the right thing and raise rates preemptively to maintain price stability. Bernanke and Kohn are dedicated civil servants who made decisions under the worst of circumstances for the good of the nation, not for their personal aggrandizement. (Bloomberg -- Columnists)
Fed Officials: Economy Mending, but Weakness Persists Oct 2, 2009
"I believe there is enough slack in the economy to keep inflation subdued for some time. In this environment, I believe that maintaining the current accommodative policy stance helps to foster both the continued recovery of our weakened economy and the stabilization of inflation rates at levels consistent with price stability," she told a conference sponsored by Market News International. Both Pianalto and Dennis Lockhart, president of the Atlanta Federal Reserve, said they expected already-high... (ABC News -- Wire)
Experts Talk Jobless Claims, ISM, Bernanke, M&A Oct 2, 2009
He went on to tout the Fed's policy stance, saying it can support the economy without stoking inflation with the tools and will to achieve price stability. Bernanke also advised against using monetary policy to burst asset bubbles, which could have side effects for the broader economy. (BusinessWeek)
Press Release: IMF Executive Board Approves First Review Under Costa Rica's Stand-By Arrangement Sep 26, 2009
Inflation has reached historical lows, providing the central bank with an opportunity to achieve durable price stability. Monetary policy will maintain its cautious, gradual easing bias conditional on a decline in inflation and exchange rate expectations. (IMF News)
Food and commodity crisis may follow, says economist Sep 26, 2009
Interest rate alone is insufficient to address economic growth, price stability and the development of capital market instruments, which was what the US Federal Reserve was trying to do, he said, adding that fiscal policy, for example, could be a growth instrument. Most Viewed. (The Star Online, Malaysia -- Business)
Stocks Slump in Post-FOMC Reversal Sep 24, 2009
"Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability," the Fed said ... The important take-aways from the September Fed meeting are that "the Fed has no intention of raising the fed funds rate for the... (BusinessWeek)
General Mills Profits on Strong Cereal Sales Sep 24, 2009
The food maker said it doesn't expect costs for ingredients used in its products to rise in the near term meaning some price stability for shoppers and continued profitability for the company and its investors. "This market is working well, it's sustainable and so we're sticking with it," General Mills CEO Ken Powell said. (ABC News -- Business)
U.S. Fed leaves interest rate unchanged Sep 24, 2009
"In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability," FOMC said in the statement. The Fed on Wednesday also decided to slow down the pace of a program designed to aid housing purchases amid signs that the battered housing market is stabilizing. (Xinhuanet, China)
