Lorenzo Bini Smaghi, ECB Executive Board Member
Said that interest rates are "still very accommodative?That is the reason that the process of realigning interest rates will continue in coming months" with the pace hinging "on the underlying growth of the European economy. August 7, 2006
Klaus Liebscher, ECB Governing Council Member
Said that monetary policy remains accommodative and "we are convinced that the current level of interest rates is in no respect hindering growth or job creation. Nominal real interest rates are still on a very low level for European standards?I see that upward risks to price stability have not receded but rather worsened. If we see based on the data that a further tightening of the relatively accommodative course is needed, then it will happen. But we will do what is necessary at the right time. August 7, 2006
Christine Lagarde, French Trade Minister
French companies are beating records for exports. We are exporting more than we import... The trade deficit is going to keep going down. August 10, 2006
Michael Glos, German Economics Minister
"The latest figures on second quarter GDP growth are an indication that the local economy has finally turned around. The economic knot of the past year has finally burst. In the first-half of 2006, economic dynamism has significantly increased." August 14, 2006
But some remaining dovish and talk down both rates and the euro?
Thierry Breton, French Finance Minister
The euro seems fully-valued to me right now and so we have to be careful that (monetary) policy inEurope do not lead to it being strengthened. August 11, 2006
"Inflation is under control in France. The trend is even downwards. There are no second round effects linked to the rise in oil prices. In this context, we remain very vigilant, within Eurogroup, that European public policy does not handicap growth. We speak about this regularly with the ECB. I note that the markets do not expect a sharp rise in rates in the coming months because quite simply it is not necessary." August 14, 2006
US Fed: Preparing for Slowdown?
Following the FOMC decision to hold rates steady, the focus has turned not only to US economic growth, but also to expansion in the country of their biggest trade partner?
FOMC Statement
The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. August 8, 2006
Janet Yellen, Federal Reserve Bank of San Francisco President
"The need to incorporate lags between policy actions and effects on the economy is a key issue. So if we kept automatically raising rates until we saw inflation start to respond, we most likely would have gone too far." August 8, 2006
Henry Paulson, US Treasury Secretary
Noted that the firm retail sales data reflected the overall health of the U.S. economy, but that he expected growth to slow to a more sustainable pace. August 11, 2006
"China needs to make the transition from an export-driven economy to one that consumes more." August 14, 2006
"When you're talking about imbalances in China, there's no doubt that in the short term they need to show much more flexibility on the CNY. Longer term, we all want the CNY to be traded in competitive open marketplace. August 14, 2006
One thing clearly Chinese leaders have to be very careful about making sure they don't have an economy that overheats." August 14, 2006
World Bank Report
After raising its estimate for China's 2006 economic growth for a third time in five months, to 10.4% from 9.5%, their report said, The continued investment boom warrants concerns about efficiency, making more moderate growth desirable. August 15, 2006
SNB: The Stellar Swiss Economy
What the President of the Swiss National Bank President had to say on August 14, 2006?
Jean-Pierre Roth, SNB President
On interest rates:
"We're pursuing a strategy of gradual rate increases and we're sticking to it.
On inflation:
Roth also said that he hoped Switzerland's new Chancellor of the Exchequer Doris Leuthard would continue her predecessors' drive for further privatization and heightened competition in Switzerland since a fight against inflation would be easier if there was more competition.
On the markets:
Remaining optimistic about market stability, Roth noted, As we have seen -- despite wars and terrorist attacks -- the financial markets remain stable. Neither the war in Lebanon nor the foiled terrorist attacks in London caused significant turbulence either on the currency or stock markets.
On Swiss franc weakness:
"Over the past few months, the Swiss franc has even trended downward - a decline that is hard to explain given the low rate of Swiss inflation as compared to the rest of Europe.
BOJ: Wait and See
The hawkish stance we had previously seen from the central bank appears to be easing as the government remains cautious?
Toshihiko Fukui, Bank of Japan Governor
"If I was asked whether or not there is any chance of another rate hike before the end of this year, I would neither rule this out nor suggest that there will be one. In other words, we are completely open to any possibility, and we do not have any preconceptions as to the timing about the next rate hike. Since I said last month that we do not aim at consecutive rate hikes, the market appears to have established the view that there will be no rate hike before the end of this year." August 11, 2006
Kaoru Yosano, Japanese Economic and Fiscal Policy Minister
"When the Bank of Japan ended its zero rate policy it said future rate rises would be made in a gradual manner while looking at market conditions. So we don't think the next rate increase is near." August 11, 2006
He also notes (when discussing the GDP data): "Oil prices are moving on demand as well as growing geopolitical risks. The issue of oil prices is something we need to consider seriously." He adds that oil prices will be a more serious problem in Q3. August 11, 2006
Shinzo Abe, Japanese Chief Cabinet Secretary
"As I have said before, I think the end of deflation is coming into view. But I would to look at various data, such as GDP and CPI to verify this view." August 10, 2006
Masayuki Gotoh, Japanese Cabinet Office Senior Economist
"While private consumption continued to moderately increase and corporate capital spending is expanding, public sector demand is continuously shrinking." August 11, 2006
