IFI Neglect Forces Africa to Other Lending Sources, Zambia Says (9:31 a.m.) To put a floor under the currency, Rhee was forced Wednesday to deliver another half-point increase, with two dissenting votes. The governor’s guidance was a shift from the strategic ambiguity preferred by his predecessors.īut his plan only lasted one meeting as the Federal Reserve’s third-straight 75 basis-point hike sent the won tumbling, threatening to exacerbate Korea’s already elevated inflation. Rhee in July oversaw the Korean central bank’s first-ever half-point increase, saying at the time that, barring unexpected events, he would prefer to keep to a gradual pace of tightening going forward. “One thing I can say without a doubt is that the work of a central bank governor has never been more challenging,” he said in a speech at the Peterson Institute for International Economics on Saturday. “Price caps, if temporary, only reduce current measured inflation at the expense of future measured inflation - it’s some kind of inflation smoothing.”īank of Korea Governor Rhee Chang-yong pushed back against criticism that this week’s outsize interest-rate increase breached a pledge to stick to quarter percentage-point moves. “We should not be under the illusion that price caps reduce underlying inflation,” the European Central Bank policy maker said. Government-funded price caps on energy aren’t a reason for central banks to ease off policies to combat surging inflation, Bank of France Governor Francois Villeroy de Galhau said. Villeroy Says Central Banks Must Not Be Fooled by Price Caps (11:55 a.m.) “The BOJ considered it appropriate to continue with monetary easing, to support the economy, to ensure a shift in norms and to ensure the price stability target in a sustainable and stable manner,” Kuroda said at a Group of 30 seminar in Washington on Saturday. “Most of the time we are recipients of support - of aid, of resources - as opposed to the giver of resources to the rest of the world and that creates a naturally uneven relationship, but we should strengthen ourselves and we should be listened to.”īank of Japan Governor Haruhiko Kuroda said he’ll stick with monetary easing, signaling no change in stance after the yen continued its rapid slide this week and dropped to a fresh 32-year low. “We are at the table and increasingly so, but we occupy a small stool at the table,” Zimbabwean Finance Minister Mthuli Ncube said. World Stage Marginalizes Africa, Finance Heads Say (1:23 p.m.)Īfrica’s influence on issues of global importance remains far too narrow for a continent of 1.2 billion people who are bearing the brunt of external shocks, finance ministers said. “So rather than saying here’s our number and that’s it, we were trying to signal wherever that takes us is what we are going to do.” “We’re not trying to be overly precise about where that target level, where this terminal level is because it’s going to move with the data inflow,” he said. This advertisement has not loaded yet, but your article continues below.
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