Central Banks

  • 2015-05-25 09:10


    --FOMC Acknowledges Low Rates for Long Time Can Cause Reach for Yield
    --Breaking Up Large Complex Banks Won't Necessarily End Too Big Too Fail

    WASHINGTON (MNI) - Cleveland Federal Reserve Bank President Loretta Mester extolled the virtue of the U.S.

  • 2015-05-25 04:28


    By Johanna Treeck

    SINTRA,PORTUGAL(MNI) - US Federal Reserve Vice Chairman Stanley Fischer said Saturday that the domestic economy need not be overly concerned about the trade-off between near zero interest rates and financial instability should monetary policy be tightened by year-end.

  • 2015-05-25 04:26


    By Johanna Treeck

    SINTRA, PORTUGAL (MNI) - European Central Bank Governing Council member Patrick Honohan Saturday called on fellow central bankers to remove obscure language on structural reforms and offer clearer policy advice.

    Honohan's spoke at the ECB Forum on Central Banking in Sintra, Portugal that was kicked off with a speech by Mario Draghi Friday in which the ECB President defended the Bank's frequent calls for a shift in national policies.

    "Structural reforms that reverse the downward drift in potential growth are now vital for the euro area, which is why I believe, as the guardian of the currency, we have a legitimate interest in talking about them," Draghi said, adding that "structural reforms" are mentioned in about a third ECB Executive Board member speech

  • 2015-05-25 01:29


    TOKYO (MNI) - Industrial production is expected to be flat in the April-June quarter from the three months amid slow global growth and a modest rise in domestic demand, the Bank of Japan said in its monthly economic report for May released Monday.

    "Based on anecdotes by firms and other information, industrial production is expected to tentatively become more or less flat following gains in the latest two quarters (+1.5% in Q1 and +0.8% in Q4 of 2014)," the bank said.

    The view was largely unchanged from the previous month but the BOJ slightly modified its assessment of factory output.

    Industrial production has been "picking up," it said, leaving out the reason - "due in part to the progress in inventory adjustments."

    The government's forecast index shows indust

  • 2015-05-24 16:32


    An International Monetary Fund review into allowing the yuan to join the basket used to calculate its Special Drawing Right may continue into next year, a senior People's Bank of China official has said.

    Vice-Governor Yi Gang also repeated Beijing's commitment to not allowing the yuan to depreciate to help boost economic growth and counter the current slowdown.

    "We shouldn't, because the surplus is still relatively large so in this case there's no need to devalue the yuan," he said, according to an official report of remarks delivered to a Shanghai government-organized conference just ahead of the weekend.

    China's yuan has resisted the dollar strengthening of recent months, helped in part by explicit as well as quiet market interventions by the PBOC.

  • 2015-05-24 08:00


    By Johanna Treeck

    SINTRA, PORTUGAL (MNI) - European Central Bank Governing Council member Patrick Honohan Saturday called on fellow central bankers to remove obscure language on structural reforms and offer clearer policy advice.

    Honohan's spoke at the ECB Forum on Central Banking in Sintra, Portugal that was kicked off with a speech by Mario Draghi Friday in which the ECB President defended the Bank's frequent calls for a shift in national policies.

    "Structural reforms that reverse the downward drift in potential growth are now vital for the euro area, which is why I believe, as the guardian of the currency, we have a legitimate interest in talking about them," Draghi said, adding that "structural reforms" are mentioned in about a third ECB Executive Board member speech

  • 2015-05-24 08:00


    By Johanna Treeck

    SINTRA,PORTUGAL(MNI) - US Federal Reserve Vice Chairman Stanley Fischer said Saturday that the domestic economy need not be overly concerned about the trade-off between near zero interest rates and financial instability should monetary policy be tightened by year-end.

  • 2015-05-22 14:00


    TOKYO (MNI) - The International Monetary Fund said Friday that the Bank of Japan is unlikely to meet its target of anchoring inflation at 2% in the next year or so and again called on the Japanese government to work on fiscal consolidation and push for structural reforms to reduce overdependence on monetary policy.

    In its annual Article IV consultation statement on Japan, the IMF said, "Additional monetary easing while strengthening its effectiveness through more explicit guidance would enhance inflation dynamics.

  • 2015-05-22 13:38


    --Current Negative Inflation Rate Is "Good Deflation"

    LONDON (MNI) - Bank of England Chief Economist Andy Haldane said Friday that interest rates will start to rise at some point, but when they do, Bank Rate hikes will likely be slow and gradual.

    "When rates do start rising - and I've no idea when that will be - increases will likely be slow and gradual," Haldane told BBC Radio Scotland.

    The Bank of England's benchmark Bank Rate currently stands at a record low 0.5% - a level it has now sat at for over 6 years.

    However, Haldane underlined comments he has made in the past, stating that when rates did start to rise, they were unlikely to hit the levels seen before the financial crisis.

    "When rates do start rising, they will not hit the "old norma

  • 2015-05-22 13:24


    --Economy Well-Positioned For Growth of 2.5%; Infl Headed to 2%
    --Need To See Further Labor Market Improvement; Reasonable Confidence on Infl

    By Steven K.