All reserve banks news

"The Bank of Canada today maintained its target for the overnight rate at 1¼ per cent. The Bank Rate is correspondingly 1½ per cent and the deposit rate is 1 per cent.

Global economic activity remains broadly on track with the Bank's April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. Global oil prices have been higher than assumed in April, in part reflecting geopolitical developments.

Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April, largely because of recent increases in gasoline prices. Core measures of inflation remain near 2 per cent, consistent with an economy operating close to potential. As usual, the Bank will look through the transitory impact of fluctuations in gasoline prices.

In Canada, economic data since the April MPR have, on balance, supported the Bank's outlook for growth around 2 per cent in the first half of 2018. Activity in the first quarter appears to have been a little stronger than projected. Exports of goods were more robust than forecast, and data on imports of machinery and equipment suggest continued recovery in investment. Housing resale activity has remained soft into the second quarter, as the housing market continues to adjust to new mortgage guidelines and higher borrowing rates. Going forward, solid labour income growth supports the expectation that housing activity will pick up and consumption will continue to contribute importantly to growth in 2018".

• Have more staff looking at China than any other single overseas economy

• Australia, China together can be 'strong voice' for importance of open international trade, effective regional co-operation

• Single biggest risk to Chinese economy lies in financial sector and the big run-up in debt

• Says C.Bank does not see strong impact from rouble rate on inflation

• C.Bank to review its short-term oil price forecast in june

• There is only marginal impact from roulbe weakness in april on inflation

• Had been concerned our forecast may have been little optimistic, but now more confident in it

• Important uncertainty relates to household balance sheets

• Recent data suggests wage growth has troughed

• Current tensions around trade policy a "significant risk" to global economy

• Wages expected to pick up gradually as leading indicators pointed to more job gains

• Still uncertainties remain on extent, speed of pick-up in wages and inflation

• Strength in employment has supported household consumption so far

• High household debt poses uncertainty for consumption outlook

• Conditions in global economy positive, China debt levels an important risk

• Progress on unemployment and inflation likely to be only gradual

• Given current circumstances, board agreed next move in rates likely to be up, rather than down

• March qtr inflation data in-line with bank's expectations

• Inflation to remain low for some time given retail competition, slow wage growth

• Forecasts industrial output at 1.3-1.8 pct in april, y/y

• Q2 gdp growth to slow to 1-1.4 pct, y/y, due to high base effect in 2017

• U.S. economy is slightly beyond level of full employment

• Doesn't expect inflation to pick up sharply

• Impact of U.S. tax cuts and government spending on economy still uncertain

• Uncertainty over U.S. trade policy could cause firms to alter spending plans in the near term

• Says without doubt our communication will be adjusted given that current rates guidance is explicitly conditioned on the end of net asset purchases

• Need for some form of common stabilisation function to prevent countries from diverging too much during crises

• What is still missing, however, is a backstop for the single resolution fund

• People expect the euro to deliver the stability and prosperity it promised

• Says for me the decision to keep rates on hold in may was straightforward

• There are some steps remaining that Govt needs to take on structural reform, growth strategy

The Bank of England's Monetary Policy Committee (MPC) released its June meeting minutes on Thursday. All members voted to keep the central bank's monetary policy unchanged.

The consumer price inflation in the U.K. was 0.3% in May, below the central bank's 2% target. The BoE noted that inflation was driven by a drop in energy and food prices, adding that this effect would dissipate over the next year.

The central bank warned about the consequences in case of the country's exit from the European Union (EU). According to the central bank, the possible Britain's exit from the EU was the largest risk to UK financial markets global financial markets.

The central bank said that Britain's economy slowed in the first quarter and was expected to decelerate in the second quarter as uncertainty around Britain's membership in the European Union (EU) weighed on the economy.

The BoE noted that the domestic private sector remained resilient, while consumer confidence was robust.

All MPC members agreed to hike interest rate gradually once the BoE starts raising its interest rate and "to a lower level than in recent cycles".

The BoE also said that the referendum was the main risk to the outlook.

"A vote to leave the EU could materially alter the outlook for output and inflation, and therefore the appropriate setting of monetary policy. Households could defer consumption and firms delay investment, lowering labour demand and causing unemployment to rise. Through financial market and confidence channels, there are also risks of adverse spill-overs to the global economy," the central bank noted.