Foreign Central Banks
None of the four major central banks has changed its policy setting since the Federal Reserve shaved 25 basis points from the federal funds rate target in late June. Inflation performance has remained relatively benign in the U.S., at least as measured by the personal consumption deflator. In the U.K., inflation remains near its 2.5% target, having increased each month since February. Inflation in the euro area currently exceeds the 0%–2% target zone, while the struggle against deflation continues in Japan.
Suggested citation: "Foreign Central Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-08, pp. 18, 08.01.2001.