Foreign Central Banks
On November 6, the Federal Reserve reduced its federal funds rate target 50 basis points (bp) to 1.25%. Since then, the Bank of England’s Monetary Policy Committee has twice left its policy rate unchanged. Although the European Central Bank did not change its policy rate on November 7, it did cut the rate 50 bp to 2.75% on December 6. Also in November, the Bank of Japan noted reduced prospects for economic growth but left its target for the range of current account balances unchanged. Nonetheless, the actual supply of balances, currently more than ¥19 trillion, has been moving steadily toward ¥20 trillion, the upper end of the target range.
Suggested citation: "Foreign Central Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-12, pp. 18, 12.01.2002.