Monetary Policy
Carstens expects Mexican inflation to end year at 3% target
Bank of Mexico governor expects inflation to end the year at 3% target, but does not rule out an interest rate increase if prices start to rise due to a weaker peso
Riksbank seeks greater clarity with redesigned monetary policy report
Shorter report aims to focus more on analysis and less on detailed data reporting, with new layout to boost readability; head of forecasting says design process drew on years of feedback
SNB’s Danthine: traders wrong to paint Swiss franc surge as black swan
It was 'absolutely certain' that SNB would end Swiss franc floor, says vice-chair of the governing board
RBNZ hires monetary policy advisers as inflation drops to 15-year low
Graeme Wheeler says advisers ‘bring fresh viewpoints'; assistant governor says monetary policy can do little to influence inflation outcomes in ‘near term'
BoE minutes remind markets not to be complacent
Minutes show MPC firmly positioned for coming rate hike; economists suggest central bank may be warning markets they have overestimated willingness for easing
Central banks of Colombia and Peru expect bond impact from Fed rate hike
Even though markets are already anticipating a Fed interest rate hike, it will still have an impact on bond markets and asset prices, the governors of the central banks of Colombia and Peru argue
Greece raids local authorities for cash as repayments loom
Local authorities instructed to transfer cash balances to treasury accounts at the Bank of Greece; Constâncio says default would not ‘automatically’ push country out of the eurozone
Kuroda calls for deeper understanding of expectations
Bank of Japan governor wants increased awareness of the mechanism through which inflation expectations are formed to help the design of monetary policy
PBoC steps up support with reserve ratio cuts
People’s Bank of China cuts the ratio for the second time this year, with observers pointing to pressure on the monetary base from foreign exchange outflows as a motivating factor
Mexican deputy tells EMs to assume US rate hike coming ‘sooner rather than later’
Javier Guzmán Calafell advises emerging markets to prepare ‘as fast as possible for a worst-case scenario’ in anticipation of the Federal Reserve tightening policy later this year
Carstens-led IMFC urges policy-makers ‘to attenuate’ spillovers and spillbacks
Fund calls for ‘careful calibration’ of policy normalisation; endorses use of capital controls as a last resort
Europe/US policy divergence ‘good news’ for monetary system, says top central banker
Spill-overs should not be a factor in monetary policy decisions; precedents for European and US policy to diverge, says top-level European central banker
Praet says onus on governments to ensure permanent recovery
Accommodative monetary policy is ’playing a key role’ in helping return inflation to target, argues Peter Praet, member of the ECB executive board
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