ECB Up in Arms on the Euro
BOJ Central Bankers in Waiting
Oil Round Two of Production Cuts?
ECB Up in Arms on the Euro
French fiscal officials are in a panic over EUR/USDs recent rise above 1.30:
Thierry Breton, French Finance Minister
The recent depreciation (of the dollar) requires our great collective vigilance. November 27, 2006
Christine Lagarde, French Trade Minister
The euros recent rise has been of a considerable degree and I urge the ECB to pay heed to (economic) growth and not just retraining inflation. November 27, 2006
However, no one else within the Euro-zone seems to care:
Jean-Claude Juncker, Euro Group President
I am not too concerned by the current strength of the euro. We have to remember the time a few years ago, when the euro was below the parity of one. During that time we were very much concerned. I don't think we have to be concerned now. We are lengths away from the critical zone?I don't think that the time has come to be too outspoken about this issue. November 27, 2006
If anything, ECB members are just as hawkish as ever:
Lorenzo Bini Smaghi, European Central Bank Executive Board Member
There is a slowdown, but to a rate of growth that's robust, somewhere around the (Euro-one's) potential?But there are still risks and uncertainties due to fiscal policy restrictions and oil price trends, which could become more moderate?We'll see how things go in the first few months of 2007, for now its premature to predict what we'll do after December. November 27, 2006
Jose Manuel Gonzalez-Paramo, European Central Bank Executive Board Member
In our December meeting, we will make a detailed analysis of what the recent data means for the future. The bank never decides ahead of time on monetary policy. November 22, 2006
There is a strong possibility that inflation will top 2% next year and strong vigilance is needed. The bank will do what is necessary to ensure stability. November 24, 2006
BOJ Central Bankers in Waiting
The Bank of Japan remains cautious of the effects of weak consumption on economic growth, but still seems anxious to hike rates:
Monetary Policy Committee Minutes from October 12-13 Meeting
As we saw a considerable decline in consumption in the recently announced GDP data (in Q3), we cannot ignore it. Released November 21, 2006
Toshihiko Fukui, Bank of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Japan Governor
Japans economy has been expanding for a long time. The threat of a deflationary spiral is gone and some land prices in major cities are rising, showing that economic conditions are a lot different from several years ago. November 27, 2006
Toshikatsu Fukuma, Bank of Japan Board Member
We will make our monetary policy decisions cautiously without holding any particular views in advance, while monitoring developments in the economy and prices in data-dependent fashion and keeping in touch with the market. The Japanese economy has shown a moderate but sustained expansion in line with the standard scenario in the outlook, backed by growth in both domestic and external demand. November 24, 2006
Toshiro Muto, Bank of Japan Deputy Governor
The Bank of Japan would carry out an additional interest rate hike once it confirms a need to act. November 21, 2006
Oil Round Two of Production Cuts?
Oil ministers from around the world have been setting the stage for another cut in production in December in order to support prices:
Sheikh Ali al-Jarrah al-Sabah, Kuwaiti Energy Minister
If there is any deterioration in the prices (of oil), we are going to cut, and noted that $55-$60 a barrel was very satisfying for Kuwait. November 22, 2006
Mohamed Bin Dhaen Al Hamli, UAE Oil Minister
It (US oil stocks) is the highest for the past eight years. We are of course very concerned, that is why we have to look at the market very closely. November 23, 2006
Ali al-Naimi, Saudi Oil Minister
We must look at the impact of the measures (the output cut) decided in Doha, if they are adequate, we will be satisfied, if they are not we will act again (at OPECs December meeting) and the aim is to bring stability back to the market. November 27, 2006
The (oil) price is not an indicator, the indicator is stockpiles and the excess of supply over demand. The price is irrelevant, what is important is stability in the market and balance between supply and demand. November 27, 2006
Rafael Ramirez, Venezuelan Oil Minister
The new cut will be proposed ... because (oil) price remains unstable. In December there will be consensus to continue acting on volume. November 23, 2006
Al Bawaba
