Foreign Central Banks
The Federal Open Market Committee increased its federal funds rate target by 25 basis points to 1.25% on June 30, “with underlying inflation still expected to be relatively low.” The Monetary Policy Committee of the Bank of England raised its target another 25 basis points to 4.75% on August 5, “to keep CPI inflation on track to meet the 2% target in the medium term.” The analogous committee of the Bank of Japan has maintained a ¥30–¥35 trillion target for current account balances since January, and there has been no significant change in the division of those balances between required and excess reserves.
Suggested citation: "Foreign Central Banks," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-08, pp. 18, 08.01.2004.