Monetary Policy
IMF staff back Moldovan central bank response to crisis
Staff report supports many actions taken by the Moldovan central bank in dealing with the crisis caused by banking fraud; calls for bank to gain more powers and independence
ECB will 'review and possibly reconsider’ stance in March
ECB policy rates and asset-purchase programme remain unchanged, but Draghi says council was ‘unanimous’ in agreeing it should announce March review
Economists point to external woes as Central Bank of Brazil holds rates
Monetary policy committee leaves interest rate at 14.25% in surprise move; politics and fiscal policy making life harder for central bank, analysts suggest
Monetary policy less effective than structural reform, Davos panellists argue
Structural reform is more effective than monetary or fiscal policy in current conditions, Axel Weber and Raghuram Rajan agree; Weber foresees four Fed rate rises but thinks markets disagree
BoJ regional research divisions see ‘moderate’ recovery
Nine regions report the economy has ‘continued to grow’, often at a ‘moderate’ pace, in the past three months; some note impact from emerging markets slowdown on exports and production
Independent review calls for major changes at Riksbank
Riksbank criticised for reliance on models, board members’ quarrels and ‘surreal’ monetary guidance, though King and Goodfriend say it is ‘clearly a success’ compared with past regimes
Carney says UK rate hike still some way off
Continued weakness in key indicators begins to puzzle policy-makers as Carney suggests there is room for the MPC to wait longer; CPI and core inflation on the rise
IMF cuts global growth forecast on back of EM challenges
Maurice Obstfeld says emerging markets and developing economies account for more than two-thirds of revisions; largest changes come in Brazil, where the MPC meets today
Bank of England's Vlieghe wants more nuanced approach to monetary policy
Bank of England policy-maker says high levels of debt, ageing population and distribution of income combine to make him ‘patient' about rate hike; questions modelling based on representative agents
Bank of Italy outlines downside risks as inflation falls
Annual HICP inflation fell to 0.1% according to December estimate, just below eurozone average; Bank of Italy warns that international situation poses ‘significant risks’ to European recovery
Central banks struggling to exit ‘confused period’, economists say
The financial crisis forced a regime change on central banks, raising challenges to independence, analysis and policy tools, which have yet to be fully resolved, say panellists in Brussels
New York Fed president keeping eye on expectations
William Dudley expects inflation expectations to increase if the economy keeps growing at an above-trend pace, but any deviation could be cause for concern
Zeti warns of ‘immense' challenges in 2016
Bank Negara Malaysia governor warns of potentially persistent threats to long-term growth at the AFF conference in Hong Kong, but sees a silver lining if policy-makers get it right
Polish governor says inflation will rise slower than expected
Inflation will not turn positive in January 2016 as previously expected, governor Marek Belka says; monetary policy council keeps policy rate unchanged
BoJ paper: inflation expectations do not match target
Study of ‘dissonance’ in forecasts between economic agents and the central bank finds people only believe the BoJ will hit its target in the short to medium term – after that, inflation drops
Volatility fails to shake outlook as BoE holds rates steady
Latest MPC minutes are largely preoccupied with discussion of international developments, but falling oil prices and market volatility do not herald major change in stance
BoE paper seeks to improve forecasts with adaptive model
Using an adaptive model in conjunction with heavy-tailed t-distributions allows authors to deliver ‘substantial improvements’ in forecasting inflation
Indonesia cuts interest rates following Jakarta attack
Local reports suggest central bank's board was meeting at time of bomb blasts in downtown Jakarta; rate cut ‘should provide overdue boost' to the economy but comes with risks, says analyst
Reserve manager of the year: National Bank of Denmark
The National Bank of Denmark's new risk budget-based investment strategy stood up well to the unprecedented flows of funds into and out of the country in 2015.
Consultancy and advisory services provider of the year: BlackRock Solutions
A key partner to major central banks engaging in complex asset purchases, asset quality reviews, resolution mechanisms and strategic asset allocations
Sarb deputy governor sees growing inflation risks ahead of MPC meeting
South African Reserve Bank policy-makers must assess ‘very carefully’ whether its stance remains appropriate, Mminele says; MPC meets January 21
SNB’s Zurbrügg lays out considerations around interventions
Vice-chairman of governing board says there is no ‘one-size-fits-all’ method for deciding when or how to intervene in the foreign exchange market
Survey data offers chance to assess eurozone macro-prudential policies, paper argues
Data from the eurozone’s Bank Lending Survey can be used to analyse the effectiveness of different macro-prudential policies, an IMF working paper argues; subject is little known, researchers say
Senate blocks proposal to conduct ‘full audit’ of the Fed
‘Audit the Fed’ bill fails to secure support needed to proceed to Senate floor; Bernanke joins ranks of current and former Fed officials warning of potential threat to independence