BOJ: An Imminent End to ZIRP?
One of the most eagerly anticipated rate announcements comes this Friday
Some politicians arent feeling very hawkish?
Sadakazu Tanigaki, Japanese Minister of Finance
It's desirable that the Bank of Japan will maintain interest rates near zero to support economic growth, as there is basically no concern about inflation. July 11, 2006
Koichi Hosokawa, Japanese Vice Finance Minister
"In order to achieve sustained economic recovery without inflationary worries, it is desirable for the BOJ to maintain its zero rate policy to support the economy on a monetary policy front. July 6, 2006
Others are phrasing carefully?
Kaoru Yosano,Japan Economic and Fiscal Policy Minister
"Although the conditions (for an interest rate rise) are emerging, the Bank of Japan should carefully decide its policy, looking closely at global stock market movements and the direction of US interest rates." July 4, 2006
In relation to a possible BoJ rate hike, he said, "I won't say that conditions are fully in place, but clearly conditions are aligning." July 4, 2006
"We need to eventually end this (zero-interest-rate) policy. I think that would mean the normalisation of our economy. But that is a decision for the BOJ, which should make judgements based on their knowledge and experiences while taking responsibility for the decision." July 9, 2006
Shinzo Abe, Japan Chief Cabinet Secretary
"I see no impact of missile launches on the economy. Thus, I do not expect the Bank of Japan to take this issue into account when making policy decisions, and we have no plan to ask them to take the issue into account." July 6, 2006
Toshihiko Fukui, Bank of Japan Governor
"The central bank will take appropriate monetary policy actions to help achieve sustained growth under price stability, offering no fresh insights into the timing of a planned rate hike." July 6, 2006
"As the economy emerges from deflation, which is the government aim, we want the BOJ to support the economy from the monetary side." July 7, 2006
"BOJ policymakers will need to discuss economic conditions going forward when debating monetary policy." July 7, 2006
North Korea: The International Market Mover That Came Out of Nowhere
(Lack of) Action and Reaction?
Han Song-Ryol, North Korea's deputy ambassador to the UN
"If sanctions are imposed, all-out countermeasures will be taken." July 6, 2006
Tony Snow, White House Press Secretary
"The United States strongly condemns these missile launches and North Korea's unwillingness to heed calls for restraint from the international community." He adds that the missile launches "demonstrate North Korea's intent to intimidate other states by developing missiles of increasingly longer ranges." July 5, 2006
Stephen Hadley, US National Security Adviser
"Obviously, it is a bit of an effort to get attention, perhaps because so much attention has been focused on the Iranians." July 5, 2006
Japanese Chief Cabinet Secretary Shinzo Abe
"It is regrettable and we protest strongly against North Korea for going ahead with a launch despite warnings from relevant countries, including Japan. It is a serious problem from the standpoint of our national security, peace and stability of the international community and proliferation of weapons of mass destruction." July 5, 2006
Jiang Yu, Chinas Foreign Ministry spokeswoman
"China is making unremitting efforts to resolve this issue through peaceful dialogue. The six-party talks have got the recognition of the international community as a peaceful way to resolve the issue through dialogue. China believes this is an effective way to resolve the North Korean issue." July 6, 2006
Mikhail Kamynin, Russia's Foreign Ministry spokesman
"Such a provocative action significantly complicates the situation around Korea's nuclear program. The missile launches obviously run counter to moves to build confidence in the region." July 5, 2006
BOC: The End Is Near
What was said to cause the markets to think the tightening cycle is over?
David Dodge, BoC Governor
When it comes to setting monetary policy, the bank always tries to develop a complete picture of the economy. We do not react unduly to any individual piece of information." June 21, 2006
The projection we set out in our April Monetary Policy Report appears to be reasonable. That is to say, we continue to expect economic growth roughly in line with the growth of potential output, and inflation to average close to the 2% target in 2007 and 2008 June 21, 2006
Tiff Macklem, BoC Deputy Governor
Canada's economy is operating, ``if anything, probably a little bit above its sustainable production capacity. June 20, 2006
Since then, commentary has been vague?
Official Release from the Bank of Canada
"Whether one of the G7 economies is in the midst of a full-blown expansion or still in the recovery stage, central bankers and investors are now focusing on inflation or, in some cases, the prospect of inflation." June 29, 2006
"Arguably, the Bank (of Canada) is in a sticky situation." June 29, 2006
Paul Jenkins, BoC Senior Deputy Governor
Said in a speech that the bank was trying to "develop a complete picture of the economy" before setting monetary policy on July 11. June 29, 2006
This way, we do not unduly react to any single piece of information?We have to adapt and shift production toward those goods and services most in demand. Monetary policy action ... that would thwart those market signals and impede the adjustment process would not serve Canada well over the long run." June 29, 2006
Our commitment is to keep inflation low, stable, and predictable. This is the best way for monetary policy to help output and employment remain strong, and to facilitate the adjustment of our economy to global forces. June 29, 2006
ECB: Hawks Abound
A simple switch from a teleconference to a live meeting has inferred a sooner-than-anticipated rate hike on August 3rd
Jean-Claude Trichet, ECB President
Our sentiment was that it is certainly useful in the circumstances to meet physically, which permits us to have an interaction that is more profound than in a teleconference. July 6, 2006
"Accordingly, the Governing Council will exercise strong vigilance so as to ensure that risks to price stability do not materialize, thereby making an ongoing contribution to sustainable economic growth and job creation." July 7, 2006
Lorenzo Bini Smaghi, ECB executive board member
"The ECB is doing everything it can to make sure the risk of inflation is minimized." July 7, 2006
Lucas D. Papademos, ECB Vice-President
"Market expectations of a monetary policy response may help contain" a further increase in asset prices and "therefore mitigate vulnerability". July 7, 2006
Nicholas Garganas, ECB council member
There is nothing to stop'the ECB from taking a more aggressive' adjustment to borrowing costs should the need' exist, Garganas said. I would not rule out a higher adjustment to rates than 25 basis points. June 27, 2006
The sole dove...
Thierry Breton, French Finance Minister
Said "wise and measured" moves are necessary for an economy where inflation is well under control. July 6, 2006
Oil: No Longer a Matter a Matter of Supply and Demand
People in the know are saying theres plenty to go around?
Prince Turki Al-Faisal, Saudi Arabian ambassador to the United States
"We have 300,000 to 400,000 barrels per day that is going unsold because there are no buyers." June 28, 2006
Abdullah Al-Attiyah, Qatar Oil Minister
Remarked that a lack of heavy crude oil refining capacity worldwide was making it difficult for Opec to sell all of its production, although he added the group should not alter its production policies until oil prices fall to $50 per barrel. June 28, 2006
Jeroen van der Veer, CEO Royal Dutch Shell
We do believe that future [oil] prices will be significantly lower than today. July 10, 2006
However, some have ulterior motives?
Ayatollah Ali Khamenei, Iran's supreme leader
Said that the U.S. could "seriously endanger energy flow in the region" by acting against Iran's nuclear program. June 4, 2006
Kazem Vaziri-Hamaneh, Iran Oil Minister
Tehran would not use oil as a weapon, but if its interests come under attack, it will use all available means, including oil. June 26, 2006
