Monetary Policy
Tombini: Brazilian inflation might increase in the near term
Central Bank of Brazil governor believes inflation could rise in the next few months on the back of a depreciation in the real, but commits to bring it back to the target ‘as fast as possible’
Central banks should consider financial stability when setting monetary policy, finds BoJ paper
Discussion paper published by the Bank of Japan argues the risk-taking channel of monetary policy has ‘become more important’ as financial intermediation has moved to markets
HKMA launches new liquidity facility
Discount facility for government bonds aims to provide greater flexibility for banks in meeting liquidity needs; HKMA also moves to ‘streamline’ bond tenors
Belarus central bank handed 12% inflation target
President of Belarus expects inflation to fall from 20% to 12%, while the central bank simultaneously reduces its policy rate by at least 500 basis points
Bank of Russia vows to carry out ‘unlimited' interventions to defend ruble
Central bank returns to market less than a month after allowing currency to float; cuts interest rates on forex repos
Argentina governor wants new growth model for LatAm
Central Bank of Argentina governor believes Latin American countries need to invest in infrastructure and boost internal production
Spanish working paper explores inflation dynamics
Research considers the impact of different industrial structures on the response of inflation to technology, interest rate and entry cost shocks
Fisher: Fed should let security holdings 'roll off' at maturity
Dallas Fed president plans to urge FOMC colleagues to ‘think more outside the box' during final four months in office
Brainard says Federal Reserve monetary policy can ‘lean against the wind’
FOMC member says limited range of macro-prudential tools means Fed is more likely than some other central banks to use monetary policy for financial stability purposes – but there are risks
Brazil hikes rate but will deploy further measures ‘sparingly’
Central Bank of Brazil increases key interest rate by 50bp to 11.75% and says it will use additional measures ‘sparingly’; economists expect tightening to stop early 2015
BoJ’s Sato explains QE dissent
Board member who voted against expansion of QE in October says he already sees a ‘virtuous circle’, meaning more asset purchases bring high risks will little reward
Draghi plans showdown ‘early next year’
Governing council will reassess monetary stimulus in 2015; Draghi says he does not need unanimity to launch quantitative easing
Bank of Canada's Poloz defends language on household imbalances
Governor explains Bank of Canada has not changed its assessment of household imbalances, after describing them as a 'significant risk' to financial stability in policy announcement
BoE extends Funding for Lending Scheme
Scheme will continue for an additional year in a bid to boost credit provision to small businesses; Mark Carney admits lending to smaller firms is still problematic
Riksbank deputy dismisses criticism of interest rate ‘experiment'
Per Jansson says ‘leaning against the wind' played minor part in recent years' policy discussions; suggests outside predictions of low inflation have been overplayed
Cleveland Fed researchers examine Taylor rules followed by professional forecasters
Research examines the relationship between private forecasters’ projections for inflation, unemployment and the federal funds rate; finds ‘tremendous’ differences
Liquidity surplus has minor effect on short-term interbank rates, Riksbank article finds
Larger liquidity surplus in Swedish banking system since 2007 linked to downward pressure on short-term interbank rates, but effect is minor as most is invested in Riksbank Certificates
Rajan sees policy stripped back to signalling function
RBI governor says weak rate transmission has left signalling as the primary channel for monetary policy; rate cut may come ‘outside the policy review cycle’ in early 2015
Ruble's plunge sparks speculation of central bank's return to markets
Biggest daily drop since 1998 presages next week's rate hike, say analysts; ruble surpasses Argentine peso as worst performing emerging market currency of 2014
South African Reserve Bank reflects on forecasts
Latest monetary policy review analyses the central bank's inflation forecasts between 2003 and 2014, finding they 'marginally' outperform outside efforts
Icelandic research proposes new measure of core inflation
‘Dynamic factor measure' outperforms current core measures in terms of matching the mean of CPI inflation while having lower volatility, argues author
Swiss public reject gold initiative
Referendum sees 77.3% of vote against forcing the SNB to hold 20% of its assets in gold, and prevent it from ever selling them; central bank welcomes the result
Lautenschläger against QE for now
Executive board member says the costs outweigh the benefits ‘at this current time’ and raises a host of questions to consider before the ECB can start buying government bonds
Central Bank of Brazil will not be ‘complacent' with inflation, says governor
Governor Alexandre Tombini offers reassurances the Central Bank of Brazil is working to keep inflation ‘under control’ with annual CPI growth steady around 6.5%