Conflict in the Middle East: Dire Straights Indeed
The situation looks grim as fighting only escalates?
Daniel Ayalon, Israeli Ambassador to the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />US
We will go to the end now. We will not go part way and be held hostage again. We'll have to go for the kill?for Hezbollah's neutralization. July 15, 2006
Sayyed Hassan Nasrallah, Hezbollah chief
Said that the rocket attack on Haifa was retaliation for its killing of civilians and promises more "surprises". July 17, 2006
George W. Bush, President of the US
This recent flare-up?helps clarify a root cause of instability in the Middle East. That's Hezbollah, and Hezbollah's relationship with Syria, and Hezbollah's relationship to Iran, and Syria's relationship to Iran. July 16, 2006
Leaders of the G-8
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Said that Israel has a right to self-defense, tells Hezbollah to free two Israeli soldiers it captured on Wednesday, and to end its cross-border attacks. They do not call for a ceasefire and blame "extremists" for the violence, urging Israel to show the utmost restraint in its response. July 16, 2006
Tony Blair, Prime Minister of the UK
"The only way we are going to have a cessation of violence is if we have an international force deployed into that area." July 17, 2006
Emile Lahoud, President of Lebanon
"Unfortunately, what is happening is that the [UN] Security Council had a meeting and then postponed?the Lebanese will not surrender." July 17, 2006
"Stop violence and arrange a cease-fire, and then after that well be ready to discuss all matters." July 17, 2006
ECB: Only a Matter of Time
The August 3rd meeting is widely anticipated to bring about another rate hike?
The Hawks
Jean-Claude Juncker, Prime Minister and Finance Minister of Luxembourg
The president of the ECB was expressing himself over the last weeks in a very clear manner and I don't think that you would be surprised if the bank will behave in the kind of way that the president indicated during his last press conference." July 11, 2006
Pedro Solbes, Finance Minister of Spain
"We need to make an additional effort to reduce inflation." July 11, 2006
Lorenzo Bini Smaghi, ECB executive board member
"I don't consider this level of interest rate and the process of rebalancing the interest rate as hampering growth." July 14, 2006
The Doves
Thierry Breton, French Finance Minister
"The Euro-zone recovery is no longer in doubt and inflation is at a good level. July 11, 2006
Jose Manuel Gonzalez-Paramo, ECB executive board member
"As the central scenario is confirmed - that is the growth rate strengthens and in the medium term inflation remains above 2% - it is logical that the grade of monetary accommodation will gradually be removed. July 14, 2006
RBA: Proceeding Cautiously
The Reserve Bank of Australia is likely to raise rates to 6.00% at their August 2nd meeting on the back of stellar employment numbers?
John Howard, Australia Prime Minister
"Interest rate pressures in America are different from what they are in Australia. They're not totally divorced, but (it won't happen) automatically. What will determine interest rates in Australia will be the judgment made by the Reserve Bank about the future of inflation in this country." June 30, 2006
Glenn Stevens, Deputy Governor of Reserve Bank of Australia
"Of course, we target a measure of price inflation (the CPI) since price stability is the main contribution that monetary policy can make in the long run. So if we could only have one statistic that would have to be the one. July 13, 2006
The presumption is that a rise in interest rates should only be contemplated when there is clearly no alternative, and no doubt that something must be done to slow the economy in order to contain inflation. You will not be surprised to hear that I think the 'murder trial' standard of proof is not the one we should apply in making monetary policy. July 13, 2006
It's the sum of all the moves that matter, rather than the individual one. It is the overall level of rates that matters rather than the changes. July 13, 2006
Ken Henry, Treasury Secretary of Australia
"I think it's safe to say, in a world of more or less floating exchange rates and international capital mobility, we can't be confident that macroeconomic policy can be used to reduce the current account deficit without it also producing a significant slow-down in the economy, and quite possibly a recession. July 10, 2006
Peter Costello, Treasurer of Australia
This is what economic policy is all about. It's about creating a situation where people who want to work can find it. And when you find a job - it gives you the confidence for your family, your future, it gives you the confidence to save, to invest and that's a big part of keeping the Australian economy strong. July 13, 2006
However, some think the situation could still be better?
Wayne Swan, Australia Labor's treasury spokesman
There are still something like 2.3 million people unemployed or people who could work more hours, or people who could move into the labor market. But Peter Costello's neglect of skills - the skills crisis - [and] failure to provide leadership on national infrastructure is putting upward pressure on inflation and upward pressure on rates. July 13, 2006
PBoC: How flexible are they?
While some speak about acting on reforms?
Yu Yongding, PBoC MPC member
The Renminbi exchange rate should continue to appreciate gradually. This is a more efficient way of correcting China's imbalances. However, while recognizing the limitation of exchange rate policy, personally I am for more action on the exchange rate front. Current developments of China's domestic economy have made the adjustment of exchange rate policy even more urgent. July 13, 2006
Hu Jintao, President of China
Reiterated to President George W. Bush Chinas commitment to push ahead with currency reforms in an active and steady manner. July 17, 2006
Others are sounding more restrictive?
Wen Jiabao, Premier of China
"Currently, the economic situation in general is sound, but there are some striking problems. We must prevent fixed-asset investment from rising too rapidly while improving investment structures to help maintain steady, fast economic growth." July 17, 2006
Zheng Jingping, Spokesman for the Chinese National Bureau of Statistics
As Premier Wen Jiabao said, there will not be another surprise one-off appreciation of the renminbi through administrative measures. July 18, 2006
"If anyone wants to play games with the renminbi, they won't benefit from that." July 18, 2006
