Monetary Policy
IMF moves to unshackle programme countries' monetary policy
The Fund's move towards more flexible conditionality in support programmes is part of a bigger push, but some say it does not go far enough
Inflation rebound eases pressure on ECB
An increase in annual inflation and an improving credit outlook will help ease the pressure on the European Central Bank governing council, which meets in Brussels next week
Fed slows asset purchases to $45 billion a month
Growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions, the FOMC notes
IMF $17 billion rescue package will see Ukraine head towards IT regime
Ukraine's central bank will, with IMF help, transition to an inflation targeting regime in mid-2015 as part of a $17 billion rescue package agreed last night
Cœuré sees ‘limited’ case for central bank cooperation
More cooperation between central banks would not have produced especially different policies in the wake of the financial crisis, according to ECB’s Benoît Cœuré
Poland still has euro doubts after decade in EU
The National Bank of Poland could need two years to make technical adjustments before the country can join the eurozone; ERM II presents another hurdle
Pakistan governor sets out communications ‘revamp’
State Bank of Pakistan’s Wathra says the central bank will be updating its website to make it more ‘transparent’ as well as running workshops for local journalists
Bank of England launches review of MPC transcripts policy
Bank of England commissions former Fed governor Kevin Warsh to review practice of destroying records and assess the costs and benefits of publishing meeting transcripts
Colombian interbank oligopoly requires new monetary policy transmission model
The domination of Colombia's interbank market by a few large players means traditional models cannot predict how monetary policy, and financial crises, will be transmitted
Structural reforms could get eurozone out of recession, paper shows
Bank of Portugal working paper finds structural economic reforms could get the eurozone out of recession and away from the zero lower bound if designed correctly
ECB paper finds eurozone inflation better anchored than US
Analysis of medium- and longer-term inflation expectations at times of economic shocks finds European inflation expectations more firmly anchored than in the US
Turkey's Başçı says inflation will peak in May
Central Bank of the Republic of Turkey governor Erdem Başçi says current account deficit to shrink 'substantially' in 2014 at conference hosted by National Bank of Macedonia in Skopje
Financial markets still fragmented, say ECB and Commission
European Central Bank and European Commission find the eurozone is more economically and financially fragmented now than it was before the crisis
Ukraine central bank says currency can be stabilised without interventions
The National Bank of Ukraine does not for now see the need to intervene in currency markets to stabilise the exchange rate; new deputy governor appointed
New monetary policy tools in Hungary introduced to wean country off external debt
The Central Bank of Hungary is tweaking its policy tools to incentivise lenders to purchase more domestic bonds, so reducing government’s need for foreign-denominated debt
Bank of Russia hikes interest rates amid growing signs of stagflation
The Bank of Russia raised its suite of interest rates by 50 basis points after one percentage point inflation increase since mid-March; says ‘persistently high' oil prices have ‘stabilising effect'
Poloz says low rates may be new norm
Bank of Canada governor Stephen Poloz says there is growing consensus that interest rates will remain at low levels even when the Canadian economy has recovered
Danish central bank ends negative rates experiment
National Bank of Denmark moves deposit rate into positive territory for first time in two years; Reserve Bank of New Zealand delivers second successive rate hike
Riksbank minutes reveal fissures on ‘leaning against the wind' amid low inflation
The Riksbank's decision not to cut interest rates amid weak inflation earlier this month was preceded by heated debate, minutes show
Draghi comes out in favour of ECB minutes
ECB president Mario Draghi says publishing a ‘more complete account’ of monetary policy deliberations would ‘strengthen’ decision-making process
Draghi maps out ECB reaction function
Mario Draghi reveals the different circumstances under which the ECB would use each of the monetary policy instruments at its disposal
Exchange rate depreciation is of limited benefit to small, open economies, says Barbados governor
Central Bank of Barbados's DeLisle Worrell says small, open economies face forex constraint that frames economic policies and cannot be alleviated by fall in real exchange rate
IMF paper finds QE cut real US Treasury yields by 140bp between 2008-12
Using a structural arbitrage-free model of demand pressures on US real interest rates, working paper finds domestic and foreign purchases has had big impact
Bank Indonesia sets sights on regional inflation
Indonesia’s central bank signs MoU with government to signal greater focus on regional price stability, as it looks to shackle high levels of inflation