central bank

ONLY a few months ago, inflation was the main concern of central banks as the price of oil and other commodities soared.

The central banks of Japan and Australia pumped more than $15bn between them into the money markets to encourage interbank lending.

Does this mean central banks in emerging markets are finally trying to reverse the sharp plunge in their currencies over the past month?

That does not mean economists should be banned from policy making. But it does suggest they have no right to monopolise central banks.

As a matter of fact, the central banks with specific regulatory functions were created in the middle of 19th century. OK, we call it a day.

But in the light of all that has happened, whether central banks should be above politics is a question that needs a fundamental rethink.

Asian central banks have been trying to help by stepping up market intervention in an attempt to restrain currency appreciation.

'The inability to have complete information greatly hampered the function of those central banks, ' he said.

The Federal Reserve has taken the lead with its imaginative expansion of swap arrangements with central banks in a few emerging economies.

In the past couple of years, the awesome power of central banks has not always been popular.

Like the commanders of a disorderly retreat, central banks have to date staged a piecemeal response to the credit squeeze, to little effect.

Worst of all, perhaps, is the perception that central banks have acted out of a desire to rescue their "friends" in the financial sector.

Right now, some seems to be sitting in a quasi stagnant pool, deposited into reserve accounts with central banks.

He said central banks are ready to take further actions to bolster the economy.

But the gold market is now interested in how much central banks might buy, not how much they might sell.

Slower growth is, in part, a welcome sign that their central banks have taken action, and that those measures are beginning to work.

We have yet to see whether Central Banks can handle the recovery without letting inflation get out of control.

But simply looking at the indicators against which central banks tend to judge themselves, they did not respond sufficiently.

Why should it be so easy to fund such huge fiscal deficits even after central banks have stopped their buying of government bonds?

Meanwhile, two of the world's major central banks may be about to cut key interest rates in an attempt to boost the economy.

In London, we shall seek to co-operate with other Asian central banks in promoting the Asian economies to the markets and investors.

Central banks around the world slashed interest rates in a desperate attempt to get people and businesses spending again.

The latest round of meddling does not so far signal a more decisive rejection of the merits of independent central banks.

Central banks seem to have accepted the dollar's ongoing weakness, as long as shifts are not too fast and are broad-based.

But since the early 1990s, a steady flow of unco-ordinated sales from central banks contributed to a relentless drop in gold prices.

Now the chickens have come home to roost in that combination of inflation and recession that constitutes such a nightmare for central banks.

This is not a strict target of the kind some Western central banks try to stick to. But it is an ambition that the RBI has long held.

The appreciation did not stop until the two countries' central banks abruptly acted to halt it on Wednesday and Thursday.

"I think every time central banks get together and talk they realise that volatility is in no one's interest, " he said.

We welcome the actions taken by the ECB and the national central banks since the beginning of the turmoil.

In the cases of these two countries with aggressive central banks, the smart thing for investors to do is check back in June or so.

As if on cue, major central banks cut interest rates in November and December to spur growth and prop up their financial systems.

Warding off deflation, for instance, will demand more unconventional steps from more central banks for longer than many now seem to foresee.

The negative mood comes just a day after European central banks slashed interest rates in the hope of stabilizing the markets.

If the much vaunted systems do not work, then the central banks will have to step in (as the Federal Reserve did with LTCM).

So far, these central banks have held back, in view of the big cuts to public spending taking place, sluggish growth and idle resources.

Central banks used to instruct commercial banks to limit lending to a particular sector if they felt that it was overheating.

Overconsumption by US citizens, US buy-outs of foreign companies and dollars the Pentagon spends abroad all end up in foreign central banks.

Since central banks don't usually intervene except when a currency is at extremes we prefer to wait for a bounce before selling.

The idea of giving central banks independence was that they would take decisions from which politicians would shrink.

Yet despite its venerable pedigree it is the Bank of England that has at times seemed the least sure-footed of the three central banks.

Like the Fed, central banks in the U. K. and Japan already are buying the debt of their respective governments.

What none of these central banks has done, however, is to pick which companies or sectors should survive or perish.

True, such growth would bring with it earlier interest rates hikes and a quicker end to liquidity-pumping exercises by central banks.

Central banks have made a start, mainly by unwinding the emergency liquidity facilities with which they fought financial panic.

Central banks across Asia have continued to amass foreign exchange reserves at a remarkable pace.

Meanwhile government-bond yields have fallen because central banks seem to spend most of the QE money buying their own country's debt.

Any Central Bank, before issuing a certain note, takes a small quantity to be sent to other Central Banks around the globe.

But at least central banks have shown themselves ready and able to act.

Just last month the Bank for International Settlements-the central bank of the world's central banks-weighed in with precisely this advice.

Central banks could raise gold holdings marginally, he said, but sizeable purchases could cause an earthquake in the market.

Yet central banks, caught between slowing growth and surging prices, have been hesitant to turn off the taps.

Asia's central banks have invested billions of dollars in credit markets since the U. S. financial crisis started to spread in September.

In ordinary times it makes sense to leave the central banks to stabilise the economy while governments repair their finances.

Such a structure can only endure because central banks act as lenders of last resort.

"Some of the foreign central banks, led by the ECB, have been more hawkish than they needed to be, " King said.

If the ECB were to take the lead among the large central banks, the euro could rise to intolerable levels.

Among the reasons: liquidity injections by central banks, especially the US Federal Reserve, have erred on the side of overkill.

The rate increase put the ECB still further ahead of the game among the central banks of the largest advanced economies.

If the Asian central banks mop up the hot money and buy US treasuries with it, it depresses the US bond yield and boosts the US economy.

There is no doubt that the present financial crisis has been created in part by previous rescue operations of central banks.

Unlike other central banks, the Fed more than a year ago began lowering interest rates, which punished the dollar.

Central banks across the globe have cut interest rates in an attempt to boost growth after the 2008 financial crisis.

Global central banks are at a point to easily switch from dollars to RMB, at least for the marginal income.

In such a situation, the central banks would have no choice but to cut interest rates to zero.

But many central banks only have independence on legal base, but not in reality, to which should be paid more attention.

Since then , of course, the Bank of England like other central banks has not held specie reserves equal to our note issue.

But, he says, the biggest stumbling block is currency policy and that's not always in the hands of central banks.

If central banks were to regulate products, however, they would be running the financial institutions.

Over the next five years, governments and central banks will suck investors into subsidising economic growth through volatility.

Some strategists also argue that rate forecasts can be self-fulfilling, as central banks do not like to surprise markets.

If banks are unwilling to do this, central banks will have to replace them, as the Federal Reserve is now doing.

Many central banks did have responsibility for financial stability, but they carried it out poorly.

The dollar is, for now at least, the world's reserve currency, meaning non-U. S. central banks will have to keep buying Treasurys.

It took the end of the gold standard, which freed central banks to expand the money supply and reflate their economies, to spark recovery.

Surveys of lending officers by central banks show that on this level, the credit crunch is no longer intensifying.

But if a global economic downturn is to be averted, some believe central banks in Europe and elsewhere will have to follow the Fed's lead.

These monies are to be concentrated on central banks that are truly part of a nation's public treasury.

He also insisted that "none of the major central banks are out of ammunition" in the fight to prevent another slide into economic crisis.

Were central banks starting from scratch, such a cost-benefit analysis would indeed be the right way to set an inflation target.

With inflation remaining low, there was no imperative for central banks to act.

Thus, once the panic recedes and this excess demand for liquidity shrinks, central banks can and will mop up all this excess liquidity.

So far this year, central banks in at least 18 developing economies have raised interest rates, according to RBC Capital Markets.

No doubt, the preference of Asian central banks for US Treasuries has helped push down real interest rates.

As the Bank of England showed last week, most central banks go for government bonds.

For some central banks, taking financial markets by surprise with a sudden increase or cut in rates was almost a matter of honour.

Central banks around the world, including the U. S. , have kept rates at historically low rates to stimulate growth.

The policy rates at all the other Asian central banks are up to 50bp lower than the model suggests is appropriate.

One point is clear: central banks must be pretty worried to take such a joint action.

Central banks and governments therefore risk moving too swiftly out of a recession-mode strategy.

One point is clear: central banks must be pretty worried to take such a joint action.

Central banks and governments therefore risk moving too swiftly out of a recession-mode strategy.

This requires a permanent capacity to finance banks directly, just as a group of central banks did last week.

This usually takes the form of interest payments on treasury bonds purchased by central banks, putting more dollars into circulation.

I would expect the central banks to be too slow in raising their interest rates for fear of killing off the incipient recovery.

Lower interest rates would boost confidence, and that effect would be multiplied if the Fed acted in concert with other central banks.

The BIS is an organisation of international central banks which is not accountable to any national government.

Establishing more independent national regulators, alongside the independent central banks, would help but would not solve the problem.

Criticism of Central Banks, if it occurred at all in the political arena, [has been] muted and infrequent.

SDR is . . . only a notional currency that exists primarily between central banks.

SDR is . . . only a notional currency that exists primarily between central banks.

The central banks of Brazil, Indonesia and India are raising interest rates to put a stop to inflationary trends.

One gauge of that demand is the amount of Treasurys held on behalf of other central banks by the Fed.

Although some central banks are winding down a few unconventional measures, this should not be mistaken for a big policy shift.

The ECB is not allowed to fund member governments, but it or national central banks could lend to the IMF.

"All too often" , the economists conclude, "central banks privilege stability over cost in the heat of the containment phase. "

China seems happy for foreign central banks to hold limited amounts of its bonds as another step in the internationalisation of the yuan.

In recent years, central banks have not always managed macro confidence magnificently .

Furthermore, they were supervised by their national central banks and by the ECB, which "seemingly raised no objection to this lending" .

With so much public and private debt, there are "incentives to generate or acquiesce to inflation" among the global central banks.

"It makes sense that Asian central banks have been looking at other diversification plays and Korea is an obvious choice. "

But it is galling that the profitability of the banks was partly founded on an excessive reliance on central banks as liquidity providers.

What Asia requires, in short, is monetary policy decoupling. This can only happen if central banks allow greater exchange rate flexibility.

Should the U. S. worry if central banks around the world decide they don't want to hold their reserves in dollars anymore?

Huge asset and liability positions have now emerged among the national central banks, with the Bundesbank the dominant creditor (see chart).

A disparate group of central banks with different priorities seem to agree.

Only in a world where central banks retain credibility despite subjecting investors to a punishing inflation, is there no problem.

"Currencies do not instantaneously adjust. You don't get big step appreciation, central banks would restrict it, " he says.

Since the autumn of 2008 there have been repeated attempts by central banks and governments to cushion the blow of the debt-cutting process.

Central banks have been bold and dared resort to unconventional policies to respond to the exceptional circumstances of this crisis.

Both have had long careers in public life, including stints at their finance ministries and heading their national central banks.

Central banks world-wide injected trillions of dollars into the financial system, pushing target government interest rates close to zero.

The massive sums of money injected by central banks into the system have also played their part.

Told "no" , Mr Paul asked why central banks held so much of it then.

"It is also crucial if central banks are to preserve their hard-won inflation fighting credibility, " the bank added.

Lower commodity prices helped for a while, and may help further if they encourage central banks to cut rates.

So far central banks have concluded that the system is more robust than it was.

It has been dry-mouthed terror, and, one suspects, a familiar thought: what can the state and central banks do to help?

In Washington, the Federal Reserve declined to comment, in keeping with its policy of not remarking on the actions of other central banks.

Mr Booth wrote that when central banks held interest rates down, asset prices rose and bad risks began to seem good.

Since early this decade, central banks have had to cede control of long-term interest rates to global market forces.

But coordinated action Friday by European central banks to keep money flowing into the banking sector helped ease some of those concerns.

After buying dollars through currency-market intervention, central banks diversify by selling some of those dollars and buying euros.

Indeed, central banks have begun to move in such a direction.

But central banks will also be conscious of the need to offset the effects of fiscal policy, which is likely to be contractionary.

Second, the liabilities of these enterprises were held widely abroad, particularly by central banks and governments.

The immediate task facing governments and central banks is to pull the world economy out of its tailspin.

If central banks had a higher target for inflation, that would allow for bigger cuts in real interest rates in a recession.

A real shift by central banks away from the dollar would have big implications for financial markets beyond exchange rates.

Many central banks around the world are doing just the opposite, and gold continues to be stockpiled.

central banks were too constrained by the mindset of the typical inflation fighter to properly tackle the Great Recession.

In any case, cynics suspect the problem with QE is that there may never be a moment when central banks feel confident enough to unwind it.

One of the ways that central banks affect the economy is through their influence on the price of assets, like shares or homes.

The central banks are prepared to fight the last war.

We are in the midst of a once-in-a century credit tsunami. Central banks and governments are being required to take unprecedented measures.

One can ask why central banks should benefit existing shareholders rather than inject cash directly, as ministries of finance have done.

When the economy recovers and inflationary pressures build up, central banks must raise interest rates just as vigorously.

But if central banks act jointly, they could send out a strong signal.

Most central banks have been coy on the subject, not wishing to make public statements for fear of creating unrealistic expectations.

Central banks have been net sellers of gold in only seven year since the ending of the Bretton Woods exchange rate agreement in 1971.

Thursday's action had been under consideration for some time, say people familiar with the central banks' thinking.

The Koreans also have been pushing a plan to have the IMF work with big central banks and help arrange currency swaps in times of crisis.

While all this is happening, central banks are constrained in their ability to stimulate the economy by the zero nominal interest rate bind.

When central banks raced to cut interest rates to help stimulate growth, the Reserve Bank of Australia raised rates to contain demand.

In other parts of the region, rising commodity and oil prices are testing central banks' ability to take the initiative.

The central banks of Iran and Jordan and the QIA did not respond to requests for comment.

The plumbing is badly blocked, and nobody seems able to fix it, not even the central banks, the market's immortals.

The low prices of Chinese imports meant that it was easier for central banks in developed countries to meet their inflation targets.

Never before have European central banks cut interest rates by so much in such a short period of time.

Interest rates were cut to historic lows across Europe yesterday as central banks struggled to drag the region's economies out of recession.

It is easy to understand why central banks should have decided to take heroic action.

However, things might change at some point if central banks will be in a position to rein in part of the current excess liquidity.

This was the sixth bilateral repurchase agreement signed with central banks in the region.

One of the defining trends in markets this decade has been the extraordinary growth in global central banks' foreign exchange reserves.

With that kind of help, central banks haven't had to force their patients to swallow the full course of medicine.

All this compounds the pressures on central banks to restore economic growth.

Asian central banks had been big buyers of gilts in the past few months, switching out of eurozone debt, traders said.

A good starting-point is to go back to the mechanisms designed to solve the misaligned incentives of central banks.

To keep economic activity flowing, central banks around the world have coordinated efforts to inject funds into the banking system.

I am not trying to understate the impact of central banks on the market.

If the answer is luck then central banks need to be on their guard, especially as headline rates of inflation have been rising recently.

At least the central banks are having a positive effect, however temporary.

Ironically, this could itself be bad for shares, if it reduces the pressure on central banks to ease further.

The striking exception to this extra demand comes from central banks, which would like to sell some of the gold they already have.

The two central banks chose more of what each was already doing. That is better than nothing. Even more would be better still.

Governments and central banks have thrown a lot of stimulus at the economy and the result has been a fairly sluggish recovery.

Indeed, European central banks began to sell their gold reserves in the early 1990s.

Third, central banks should accompany their model-based economic forecasts with an analysis of monetary and financial conditions.

China's battle against stubbornly high inflation is part of a wider war being waged by central banks across emerging markets.

Governments that control central banks have often used their power to increase the money supply and create inflation.

That helps explain why China can move to tighten credit just as other global central banks are looking to ease it.

In the wake of the financial crisis central banks are shifting to a broader focus on "macro prudential supervision" (see article).

Iceland's tale exemplifies why central banks around the world are spraying liquidity at the financial system to keep banks in business.

Asian central banks already are contemplating removing the ultralow interest rates imposed during the depths of the financial crisis.

Better would be to supplement that funding with swap lines from Asian central banks, which have plenty of dollars.

To hold their currencies down, Asian central banks have been buying lots of American Treasury bonds.

This was the first line of defence and central banks have probably done by now most of what they could do.

The only activity that has occurred in this market has been as a result of sales to central banks.

Europe's two leading central banks are cutting key interest rates in an effort to ease the impact of the global financial crisis.

Now the battle has been joined with securities traders in central banks' effort to stamp out a combustion of market panic.

Why not take risks, if [font=Arial]you know that central banks will intervene only in falling, not rising, markets?

As pressures rose, interbank lending dried up and central banks felt they had to step in and lend freely.

It is not hard to see why the central banks are being given more clout.

Since then, central banks across the emerging markets have promised billions in reserves to boost companies' access to dollars.

He said governments and central banks need to follow policies promoting economic stability in order to enable the financial crisis to pass.

By presenting the new package in the form of an auction, central banks hope to remove that stigma.

By doing so they would be bypassing central banks and sovereign-wealth funds, recycling excess savings directly themselves.

Central banks would want to be slow in raising interest rates. That's why return on cash is going to be low.

When markets wobbled, central banks slashed interest rates. A by-product of this policy was a series of debt-financed asset bubbles.

Consequently, the pressure on central banks to print the governments' way out of their debt crisis is building up.

Already today, central banks face steeply higher oil prices combined with a pause in falling import prices from developing Asia.

Here central banks get caught in a dilemma of the proportions of a Greek tragedy .

But part of the increase reflects the fact that central banks in several countries have adjusted the way they collect data.

But fresh thinking about ways to help the jobless get the skills they need might stop people expecting miracles from central banks.

Central banks have been performing a version of that act for the past three years.

Other analysts said the lack of buying interest from long-term investors such as central banks was particularly ominous.

No. 76 of the central Banks start bombing, double south dozen DE scheme for beauty gentleman, law wind to tell beauty jun evacuated.

Central banks in India and South Korea, as well as China, have been tightening monetary policy this year to cool their economies.

Around the world, central banks that have been slower to cut rates than the Fed are rapidly catching up.

Because inflation remained low, the central banks have been slow to mop up the excess liquidity.

The challenges facing the rich world's central banks have increased as a result of the financial crisis (see article).

Foreign central banks are unlikely to participate as they once did in an expanding GSE business model.

Nevertheless, the markets (and central banks) still face a tricky high-wire act for the rest of the year.

If it is disappointed, the clamour for central banks to start cutting interest rates will start to mount once again.

So it makes sense for the central banks to be in charge of the macro-prudential bit.

In due course, the central banks will be able to sell back the assets to the private sector at an overall profit.

One of the culprits is quantitative easing (QE), a tactic devised by central banks to revive the economy.

Central banks have been buying up government debt, helping to keep interest costs low in the U. S and U. K.

Meanwhile, most central banks and investment groups do not have the resources to conduct extensive independent credit analysis.

In practice it behaves much like central banks, for whom controlling inflation is the only mandate.

Inflation is an increase in the supply of money, which in our day and age is directly caused or initiated by central banks.

Evy Hambro, manager of BlackRock's Gold &General fund, says the change in central banks' behaviour is "one major factor supporting" prices.

Thirdly, Asian central banks hold government bonds as a way of managing their currencies.

All this is dragging central banks back towards political turf from which they had been distancing themselves for years.

But central banks struggled to avoid a deflationary outcome; the result was a loose monetary policy that encouraged asset bubbles.

Apart from Japan, with its rock-bottom rates, most Asian central banks have similar leeway to cut rates more.

With government spending slowing in both regions, central banks are under increasing pressure to pick up the slack.

Central banks and finance ministries have been drawn into decisions on the appropriate levels of capital and liquidity for individual banks.

Despite decades of integration, national regulators and central banks jealously guard their responsibility for supervising individual banks.

As its economy grew, the RBA became one of the first central banks to raise interest rates after the global financial crisis.

Governments have made tremendous advances in managing their finances, while central banks have charted more independent policy.

Indeed, for all the efforts of governments and central banks, many of the global economy's long-term problems have yet to be solved.

Tensions are rising in the money markets in spite of the injection of huge amounts of liquidity into the banking system by central banks.

He argued that central banks performed best by concentrating solely on inflation, preferably with a target.

Central banks will have to go further, via either monetary policy or regulatory instruments.

Overseas central banks borrowing of dollars from the Fed is running less than a fifth of its $583 billion peak.

Central banks are becoming the only lenders in the land.

With the exception of Japan, there have been few instances of governments pressing central banks for more expansionary policies.

Can central banks with anti-inflation credibility generate sharply higher inflation in an environment of low rates?

That keeps everyone happy; the politicians get cheap money; the commercial banks make money; and the central banks keep the system liquid.

But there's a good chance that lower commodity prices will cause central banks planning on four interest-rate increases to stop at three.

Mr Posen clearly believes that another round of QE would be all the more effective if other central banks joined in.

Central banks that have lowered rates to nearly zero are now using unconventional, quantitative tools, but their efficacy is unproven.

Central banks issue local-currency bonds to 'mop up' the liquidity created when they buy dollars with newly created local currency.

But with dollar-denominated funding rates still rising, global central banks' tactics don't appear to be working.

Central banks intervene on occasion to move or attempt to move currencies to their desired levels.

Part of the aim of central banks in driving down interest rates is to encourage a greater risk appetite among investors.

Even excluding China and Singapore, Figure 13 shows the enormous rise in international reserves at Asian central banks. So far, so good.

The "no bank left behind" policy of central banks has not yet led to the kind of inflation seen in the 1970s.

This would then impose large losses on creditor country central banks, which national taxpayers would have to make good.