TOKYO:

NEW YORK: A forecasting tool developed by the Federal Reserve recommends that US interest rates should be hiked immediately to keep pace with the improving economy, according to a soon-to-retire Philadelphia Fed President Charles Plosser. Plosser, among the minority of hawkish monetary policymakers, co-published research showing the Fed-developed model calls for rates to jump from near zero to 0.5 percent in the fourth quarter of 2014, and to rise to 1.1 percent by the second quarter of 2015. The paper was co-authored by Philadelphia Fed director of research Michael Dotsey.

Bank of Japan Governor Haruhiko Kuroda said the bank has various tools left if it were to ease monetary policy again, stressing its determination to hit its inflation target in the next fiscal year. "There are plenty of ways to adjust monetary policy," Kuroda said in an interview on Thursday, reiterating that the BoJ was ready to expand stimulus again if needed to meet its 2 percent price target. Kuroda ruled out the possibility of watering down the bank's commitment to hit its inflation target in the fiscal year beginning in April, a move which has been advocated by some BoJ policymakers who believe the target to be too ambitious.

LISBON: The Bank of Portugal said that 17 institutions have expressed interest in the sale of Novo Banco, the bank created after the collapse of Banco Espirito Santo in August. The Bank of Portugal said in a statement it would not name the 17 institutions in this first phase of the sale of Novo Banco, which is expected to be finalised in the second quarter of 2015. The bank said "17 entities expressed interest in the sale process of Novo Banco within the set deadline," which was fixed at 5 p.m. local time on Dec. 31. Novo Banco's balance sheet makes it Portugal's thirdlargest lender after state-owned Caixa Geral de Depositos and Millennium bcp.