Monetary Policy
Liikanen: 'Unanimous' ECB will expand arsenal if necessary
Bank of Finland governor says a wider range of monetary policy instruments makes open decision-making increasingly important
Perceptions of monetary policy determine long-term bond yields, IMF paper finds
Rise in yields following Federal Reserve ‘taper talk' in 2013 is due to monetary policy shock; communications should place less focus on explaining adjustment triggers
Robert Pringle’s Viewpoint: A qualified case for Scottish independence
If the Scots vote for independence they will run many risks including a perilous path to create a Scottish currency; but they have the human resources to make a go of it
Bank of England QE led institutional investors into corporate debt
Portfolio rebalancing into riskier assets triggered by monetary easing did not extend to equities, BoE paper finds
Brazilian MPC says inflation will converge to target within two years
Annual inflation in August was 6.5%, but the central bank believes it will reach the target of 4.5% in the ‘early quarters of 2016'
Euro adoption linked to ‘modest’ increase in Estonian inflation
Bank of Estonia economists say the strongest inflationary effects were on food products, six months before the changeover
Chile and Peru cut key rates by 25bp citing 'low dynamism'
Both central banks point to a lack of “dynamism” in their economies as they cut their key interest rates; Peruvian statement stresses the decision does not imply a sequence of rate cuts
Draghi sets out national reforms necessary to revive investment
ECB president says inflation will not fully recover until investment increases, which is dependent on national governments pursuing structural reforms
ECB and BoE seek insights into yield curve behaviour
Frankfurt conference aims to improve understanding of the yield curve in the wake of the financial crisis, at a time when European and US yields are diverging
Cœuré explains motivation for negative deposit rates
European Central Bank executive board member says it is ‘not enough’ to lower the main refinancing rate in an environment of excess liquidity
Iwata says Japan’s exports headed for a ‘moderate increase’
The ‘sluggishness in emerging economies’ has provoked ‘some weakness’ in Japan’s exports, says the deputy governor of the Bank of Japan, but this should ‘gradually disappear’
Mexican deputy says 3% inflation target could be difficult
Manuel Sánchez, deputy governor of the Bank of Mexico, says the country’s inflation could remain above 3% and describes the target as 'difficult' and 'challenging'
Philadelphia Fed's Plosser fears ‘risky' FOMC strategy on interest rates
Regional Fed president does not want to wait to increase rates until job market has ‘completely healed'; calls for overhaul of forward guidance
Carney says 'striking' labour market differences will prompt ‘less synchronised' monetary policy
The Bank of England governor addresses UK wage conundrum; argues US is in worse position as its headline unemployment rate is 'much better than the details'
BoJ focused on ‘underlying trend of prices’
The Bank of Japan kept policy steady in August; minutes from policy board meeting reveal members’ discussion about importance of using a range of price indicators
Higher capital requirements lead to lower lending, study by Calomiris finds
Paper published today by the Bank of England finds ‘little evidence of interaction' between monetary policy and capital requirements; studies their impact on bank lending
RBA governor says bank's ‘boring' monetary policy stance a success
Glenn Stevens notes external ‘search for yield' is bidding up real asset prices in Australia; most observers expect interest rates to remain low ‘for some time yet'
ECB cuts rates and launches asset purchases
Central bank cuts refinance rate to 0.05% and deposit rate to -0.2%; Draghi unveils plans to buy asset-backed securities and covered bonds
IMF deems Czech exchange rate floor appropriate ‘for now’
Latest staff report commends CNB’s decision to intervene in foreign exchange market; supports the floor but says it should be removed ‘as soon as conditions allow’
Olli Rehn: Scotland would need central bank to join EU
Independent Scotland would not be able to both keep the pound sterling and join the EU, former commissioner argues, referring to ‘core part' of union treaty
Rwandan governor: East African Monetary Union progressing ‘as planned’
John Rwangombwa says there are ‘big gaps’ between the five member states of the East Africa Community, but he is ‘comfortable’ with the progress towards closing them
EMs evaluate macro-prudential tools in BIS publication
Central bankers across Asia and Europe assess their countries’ efforts to mitigate spillovers from monetary policy in advanced economies in a major BIS publication
BoJ’s Ishida homes in on private consumption
Policy board member says expectations of future income growth will have to increase if private consumption is to continue driving Japan’s economic recovery
ECB hires BlackRock to design ABS programme
BlackRock will advise on design and implementation of an ABS purchase programme, which the ECB could announce next week; Benoît Coeuré outlines Europe’s ‘fundamental choice’