Monetary Policy
Fed 'policy shocks' cause both dollar and foreign interest rates to fall, Boston Fed paper finds
Expansionary monetary policy shocks by the Federal Reserve leads to dollar depreciation, while similar 'unexpected expansionary announcements' by foreign central banks cause it to appreciate
Global lending conditions more connected than ever, says BIS's Turner
Big emerging market corporations are borrowing abroad, while global capital has been flowing into EMs – meaning lending conditions are more strongly connected than before
Bank of Ghana brings forward rate decision as falling currency feeds inflation
The central bank's monetary policy committee will meet tomorrow instead of February 19 following further weakening of the cedi; analysts expect rate increase of at least 100 basis points
RBA changes tune on cash and exchange rates
Reserve Bank of Australia hints at a ‘period of stability’ in interest rates and welcomes the weaker Australian dollar
Interest swaps with longer maturities more sensitive to macroeconomic news, DNB paper suggests
The impact in Sweden of macroeconomic news on the sensitivity of interest rate swaps was reduced at the effective zero lower bound at short maturities but not at longer maturities, according to paper
Global crisis weakened monetary policy transmission, Czech paper shows
New research from the Czech National Bank studies the transmission of monetary policy through different channels, finding it works as expected but was weakened in the financial crisis
Zimbabwe central bank aims to regain LORL and rate-setting powers
The Reserve Bank of Zimbabwe set to offer overnight lending to banks at a rate based on government debt yields from the end of March; will also begin issuing government treasuries
Eurozone crisis countries had to grasp the nettle of reform, says Cœuré
Delaying reforms until countries had emerged from the crisis would have been counterproductive, ECB board member says; effect of zero lower bound has been overstated, too
Central banks must lean against boom and bust to retain credibility, says Borio
A more symmetrical response to booms and busts is required to leave policy-makers with the ammunition and credibility to tackle them, says top BIS economist
Sint Maarten and Curaçao monetary union needs 'less political wisdom', more co-ordinated action
Emsley Tromp, president of the countries' shared central bank says monetary policy is helping to shrink persistent current account deficits but argues more co-ordinated action 'imperative'
Unanimous Fed decision to taper 'sets precedent'
FOMC scales back monthly purchases by another $10 billion, makes no mention of EM turmoil; unanimous decision seen as making dissent less likely in coming meetings
Kazakhstan experiences 10-year inflation low
Quarterly inflation falls to 0.6% in latest figures; National Bank of Kazakhstan predicts it will increase in the coming quarter but remain in check throughout 2014
RBNZ signals impending rate rise
Reserve Bank of New Zealand says it expects to increase the OCR ‘soon’ as inflationary pressures look set to increase over the next two years; today’s rate hold surprises markets
Russia 'welcomes' weaker currency as central bank sticks to float plan
Russian rouble is latest currency to be hit in emerging markets turmoil, but analysts believe the central bank will stick to its stated policy - or loosen their grip on the exchange rate
Carney lectures Scots on dangers of monetary union without fiscal union
Bank of England governor tells Edinburgh audience that successful currency union would need banking union, and would risk moral hazard without fiscal union
Turkey and South Africa shock markets with interest rate hikes
South Africa and Turkey join India in raising rates in the face of persistent inflationary pressures and sharp currency devaluations, ahead of the FOMC decision later today
Central Bank of Peru revises annual growth and inflation rates downwards
Bank expects inflation, at 3% annualised in November, to converge to 2% target in 2014; IMF projects 2.5%, citing 'well-anchored expectations'
RBI rate hike is first step on ‘glide path’
Raghuram Rajan says the Urjit Patel committee has outlined an ‘appropriate’ path for reducing inflation, but insists today’s rate hike does not signal the adoption of a formal inflation target
Bangladesh Bank: inflation target ‘may prove challenging’
High food inflation and a pick-up in consumer demand could make it difficult for the Bangladesh Bank to restrain inflation to 7% for the 2014 fiscal year
PBoC commits to more market reform
The People’s Bank of China reiterates the importance of handing markets a ‘decisive role’ in resource allocation in the quest for sustainable economic growth; looks forward to 2014
Former Fed economists call on FOMC to dump Fed funds rate as main monetary policy tool
Joseph Gagnon and Brian Sack want the Fed to adopt the interest rate on its overnight reverse repo facility as its main policy tool and keep interest rate paid on bank reserves at same level
Draghi spells out QE possibilities
Mario Draghi says the European Central Bank could purchase banks' loans if they are packed in the ‘proper’ way, in contrast with market calls for GDP-weighted sovereign debt purchases
Central Bank of Turkey calls emergency meeting
Monetary policy committee will announce decision at midnight local time tomorrow night; expectations of rate hike see lira bounce back from record lows, but analysts remain cautious
Tombini says Brazil is ready for ‘welcome' exit from UMP
The end of unconventional monetary policy in advanced economies is a good sign for the world economy, says Central Bank of Brazil governor Alexandre Tombini