Monetary Policy
Carney says rate hold was ‘easy decision’ after 9-0 vote
‘Super’ Thursday becomes ‘subdued’ Thursday as BoE revises growth, inflation and unemployment forecasts down; policy on hold
IMF staff tell Turkey to fix imbalances
Fund mission says central bank must tighten policy to head off growing external imbalances and inflation; low oil price keeping a lid on problems but longer-term solutions needed
Kuroda insists there is ‘no limit’ to monetary easing
BoJ governor calls combination of QQE and negative interest rates the ‘most powerful' framework in 'history of modern central banking’ and argues there is space for more easing if need be
Distribution of liquidity can impact monetary policy transmission, paper finds
Research published by Norges Bank encourages central banks to pay attention to the distribution of liquidity in the interbank market, as well as its overall level
RBI says future action depends on government decisions
Rajan says further easing depends on government budget and the result of pay negotiations; efforts are continuing to improve transmission mechanism, which could push rates down
Fischer spells out uncertainty surrounding impact of global volatility
Fischer says ‘modest overshoot’ of the longer-run unemployment rate would be appropriate, ahead of this month’s jobs data; sees benefit in maintaining balance sheet ‘for a time’
Former BoE officials warn low rates are feeding imbalances
Marian Bell and John Gieve say the Bank of England should start hiking rates soon, as signs of supply-side problems, unsustainable debt, rising house prices and inflation grow more serious
RBA flags scope for easing despite inflation rebound
Central bank emphasises need to battle below-target inflation despite recent uptick; holds key interest rate but says future cuts may still be an option
BIS deputy: animal spirits need stability
Investors need certainty over long-term prospects for sustainable growth, so more short-term stimulus by central banks is likely to make the problem worse, Pereira da Silva says
Bank of Italy growth indicator ticks up
Italian central bank’s ‘timely’ index shows eurozone GDP growth continuing in December, with the indicator reaching triple its level of a year ago
Rajan flags pitfalls of short-term thinking
RBI governor extols the virtues of macroeconomic stability, defending the central bank’s strict stance on inflation and calling on the government to stick to its fiscal consolidation plans
Bank of Russia holds after oil prices enter ‘risk scenario’
The falling oil price puts Russia at increased risk of recession while inflationary pressures grow, the Bank of Russia says, as it keeps its policy rate unchanged
BoJ slashes key rate below zero in contentious decision
Kuroda mulls further cuts as central bank intensifies battle against 'deflationary mind-set' in 5-4 vote; yen drops as inflation forecast revised down
Ukrainian central bank faces ‘difficult balancing act’
Ukraine’s central bank has boosted its foreign exchange reserves but faces high inflation and unemployment, a ‘weaker-than-expected’ recovery and possible currency pressure
Kganyago reiterates ‘hiking cycle’ as Sarb raises rates
Risks noted at previous MPC meeting are now materialising; continued volatility expected in the exchange rate
US Fed committee keeps close eye on global developments
Federal Open Market Committee watching impact of global events on risks to its economic outlook; notes mixed developments as it holds interest rate target
Capital controls essential for small open economies, Guðmundsson says
Small open economies cannot conduct fully independent monetary policy if they are unwilling to use capital controls at least some of the time, Icelandic governor says
RBNZ holds but hints at future easing as outlook worsens
New Zealand dollar reaches four-month low as Reserve Bank of New Zealand hints at prolonged inflation battle
State Bank of Pakistan reveals first MPC members
Formation of monetary policy committee is part of a broader drive towards independence and inflation targeting; one seat remains unfilled
Turkish inflation seen returning to 5% in 2018
Latest projections from the Central Bank of the Republic of Turkey suggest headline inflation will only return to target in 2018, after it overshot October forecasts, rising to 8.8%
Kosovo’s ELA rules are ‘major improvement’, say IMF staff
Central Bank of the Republic of Kosovo adopts regulation setting out the conditions for emergency fund provision; staff at IMF welcome the additional ‘detail and rigour’
Policy interactions may drive global banking contraction, BoE economists find
The combination of unconventional monetary policy and regulation may cause ‘substantial’ spillovers as banks cut cross-border lending, economists including Kristin Forbes find
Kuroda and Davos panel see little alternative to divergence
Bank of Japan governor warns a synchronised exit from easy policy in the major economies ‘could be worse’ than the ’staggered arrangement’ at present
BoE’s Weale sees shorter working week adding to inflation
Various measures suggest UK workers will gradually cut back on the number of hours they work over the next few years, adding to unit labour costs, external MPC member says