Foreign Central Banks
The four major central banks did not change their stated policy settings in May, although some movement in policy outlook can be seen. The Bank of England’s Monetary Policy Committee “agreed that, in the absence of new information which changed [two-year inflation] projections, the repo rate would need to be increased eventually.” The Federal Open Market Committee now believes that “the risks are balanced with respect to the prospects for both [its price stability and sustainable economic growth] goals. The European Central Bank “concluded that the prospects for price stability appear to be somewhat less favourable than they were towards the end of last year,” but that “price developments partly reflect the influence of specific temporary factors.”
Suggested citation: "Foreign Central Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-06, pp. 18, 06.01.2002.