Monetary Policy
Tunisia raises rates by 100 basis points to tackle inflation
Despite hike, real rates remain negative; international reserves decline to 71 days of imports
RBA unlikely to hike in short term on low inflation – governor
Current wage growth insufficient to hit inflation target on a sustained basis
Fed hikes another 25 basis points
Hike comes as US inflation runs at target, and emerging markets complain of funding squeeze; Powell reveals change to communications approach
ECB unlikely to commit to QE end date in June meeting
Most economists expect gradual reduction of asset acquisitions, and an open-ended programme
QE boosts bond prices above ‘fundamental’ level, Banque de France paper finds
Paper uses experimental techniques to simulate QE’s effects on bond markets
Sarb should adopt mid-point in inflation target band – IMF
Inflation expectations could be lowered with the explicit adoption of a mid-point at an “opportune time”, fund says
PBoC accepts lower-grade and green bonds as collateral
Central bank’s move may indicate a shift of emphasis in setting monetary policy
Bank of Canada to publish more ‘up-to-date’ analysis of stability risks – Wilkins
Central bank will reduce frequency of FSR, deputy governor says, but compensate with new online portal
Swiss reject radical monetary proposals
Less than a quarter of people vote for new monetary system; activist says vote has started a conversation
Turkish central bank hikes main rate ahead of election
Hike comes as inflation continues to rise, though the lira has levelled out
Argentina abandons monetary financing to secure IMF support
Inflation targets raised as $50 billion IMF deal requires greater central bank independence
IMF urges Algeria to abandon monetary financing
Fund says a weaker dinar would support efforts to reduce debt
Switzerland weighs bold monetary experiment
On June 10, Switzerland will vote on whether to revolutionise its monetary system and hand the central bank a monopoly on money creation
BoJ’s bond purchases impact credit spreads – paper
The BoJ’s corporate bond holdings have reached $29 billion, or about 0.6% of GDP
Banque de France paper sketches policy routes for post-crisis central banks
“New orthodoxy” would see unchanged policy goals, but more freedom to lower interest rates
Labour supply elasticity may hamper wage growth – Riksbank’s Ohlsson
As economic demand rises it can be satisfied by a higher number of workers
Trigger for emerging market sell-off still playing out, warns Argentine governor
There is a possibility of Argentina being “challenged further”, says Sturzenegger
Chilean deputy points to US inflation as biggest risk
US growth is broadly positive, but sustained wage growth could drive up rates causing sharp portfolio outflows from emerging markets; Chile relatively well positioned
Time for Central Bank of Argentina independence
Monetary financing has fallen sharply under Mauricio Macri’s administration, but must now end; independence law would help efforts to shatter Argentina’s inflationary shackles