Monetary Policy
Nothing magical about targeting 2%, Bernanke says
Former Fed chair calls for further research on ‘alternative intermediate targets’ for monetary policy during IMF panel; will work with hedge fund Citadel as adviser on range of topics
Fed presidents still divided on timing of rate hike
Heads of the Federal Reserve Banks in Atlanta, Boston and Cleveland offer different takes on current economic conditions; all united in desire for more data
Lagarde calls for ‘new multilateralism’ and pledges to move ahead on reform programme
Global policy agenda for coming year says the integration of key emerging market economies would ‘generate positive global spillovers and stability gains’
Bank of Canada sees 'front-loaded' oil price effects
Latest monetary policy report estimates Canadian economy was stagnant in first quarter as negative effects from lower oil prices hit earlier than expected; forecasts rebound in coming months
Spanish paper finds LTROs had ‘moderate’ effect
Working paper examines the impact of two ‘very long-term refinancing operations’ conducted in 2011 and 2012, finding evidence of a bank lending channel
Protester shocks Draghi at ECB press conference
President’s opening remarks disrupted by protester rushing the stage; Draghi regains composure to deliver upbeat message on impact of QE in eurozone
Central Bank of Brazil needs to battle inflation, says deputy-in-waiting
Progress in the fight against high inflation ‘is still not enough’, argues Tony Volpon, deputy governor nominee
Morocco takes ‘first step’ to flexible exchange rate
Moroccan central bank takes ‘first step in the transition to a more flexible exchange rate regime’ by revising its currency basket, as advised by the IMF
Sri Lanka, Indonesia take different tacks despite common imbalances
Central Bank of Sri Lanka cuts interest rates while Bank Indonesia holds; both banks are grappling with external deficits, making them vulnerable to outflows
SMEs benefit from easier European credit standards
Latest ECB bank-lending survey shows credit standards continuing to ease for enterprises in Europe during the first few months of this year; demand for loans widely expected to increase further
Rossi calls on supervisors to ‘build a real single house’
Senior deputy governor at the Bank of Italy stresses the importance of harmonising supervisory practices across the eurozone to ‘exploit the potential’ of the SSM
IMF sees strong dollar shaping global recovery
IMF chief economist sees benefits in exchange rate movements at launch of World Economic Outlook, but warns sharp alterations could ignite international tensions if they persist
Singapore dollar ticks up as MAS holds fire
Monetary Authority of Singapore leaves exchange rate policy unchanged despite falling prices in January and February, cites tight labour market
Mozambican central bank balances food import pressures with domestic industry concerns
Bank of Mozambique holds interest rates as it comes under pressure over the value of its currency; accused of artificially propping up the value of the metical
Bank of Portugal governor calls for a European monetary fund
Costa believes such an institution is the only way to ‘guarantee stability’ in Europe; ESM head Regling says current model has created ‘successful status quo’
‘Abolish currency to eliminate lower bound’ argues Buiter
Former BoE MPC member and Citigroup chief economist says scrapping currency is one way to push interest rates deep into negative territory – although there may be more practical solutions
FX regulator probes AUD spike prior to policy announcement
Australia's authorities look into sudden moves in the Australian dollar's value ahead of RBA monetary policy announcements
FOMC minutes: Fed cautious about June rate hike
Minutes highlight split in views of those who think rates should rise in June and those who would rather wait; Dudley and Powell give speeches urging care
Brazil’s inflation climbs to 8% despite rate hikes
Annual CPI inflation hit 8.13% in March, the highest since 2003, due to a double-digit hike in energy prices; central bank is expected to continue to raise interest rates
Korea’s record rates have further to fall, says economist
Rate cuts still look to be on the horizon despite the Bank of Korea holding steady at record lows today, says economist; government also likely to have to provide further stimulus
Russia’s Nabiullina dismisses QE possibility
Bank of Russia governor says quantitative easing is not on the table but further rate cuts are likely; sees signs that tough policy stance is working as ruble begins to recover
Bank of Finland paper tests price-level based forward guidance
Seppo Honkapohja and Kaushik Mitra use ‘adaptive learning’ approach to show price-level targeting can outperform inflation targeting under some circumstances
Linde: ECB’s QE is already ‘bearing fruit’
Households and families are enjoying better financing conditions due to the ECB’s quantitative easing programme, argues Luis Linde, governor of the Bank of Spain
Solomon Islands research illuminates inflation sources in small islands
Working paper finds domestic factors are mainly behind inflation outcomes, with the exchange rate only having a temporary impact; economy takes around a year to bounce back from shocks