Monetary Policy
Canadian bonds more normal than US and UK equivalents at ZLB
Canadian sovereign debt yields are more responsive to shocks than UK and US equivalents at zero lower bound; differences diminish at shorter maturities
IMF tells Turkey to fix flawed monetary policy framework
Article IV mission calls on central bank to ‘re-consider’ its policy framework, accusing policy-makers of targeting too many objectives and consequently failing to control inflation
Kocherlakota urges Fed to do ‘whatever it takes’ to boost labour market
Persistently low inflation means the Federal Reserve can throw all its resources behind the fledgling labour market recovery, according to the Minneapolis Fed president
ECB's Cœuré backs committed liquidity facility
European Central Bank executive board member suggests a committed liquidity facility could help remove incentives for regulatory arbitrage in the Eurosystem
Dollar lending in East Asia can override local monetary policy, says BIS' McCauley
Paper by Robert McCauley and Dong He of the HKMA argues the growth of credit in foreign currencies, especially the dollar, transmits global monetary easing to East Asia
Fed's Williams questions future of unconventional tools
San Francisco Fed president John Williams says forward guidance will help to improve transparency in more conventional times, while asset purchases should only be used as a last resort
NY Fed paper compares tools for managing short-term market rates
Researchers at the Federal Reserve Bank of New York evaluate the benefits and drawbacks of paying interest on excess reserves, offering term deposits and engaging in reverse repos
Boston Fed president says unwinding QE could take ‘several years’
Rosengren said disappointing data and the possibility for ‘disruptions’ in US fiscal policy prompted him to vote for steady asset purchases; says monetary accommodation should be removed slowly
Canadian yields shown to be less sensitive to data shocks than US or UK
Working paper from the Dutch central bank shows that at the zero lower bound, Canadian government bond yields are less sensitive to surprising domestic data than US or UK equivalents
McDermott reveals drop in New Zealand’s neutral rate of interest
Reserve Bank of New Zealand assistant governor says households and businesses should expect to face lower rates ‘on average’ in the future relative to before the crisis
BoE’s Fisher happy to hold QE ‘in reserve’
Executive director says the ‘dramatic turnaround’ in economic data has alleviated the need for further asset purchases; insists the UK is not in the midst of a housing bubble
ECB holds rates but leaves new LTRO on the table
European Central Bank governing council decides against further rate cuts in Paris, but Mario Draghi says all options remain on the table to ensure money markets remain liquid
Global banks reduce frictions in international capital flows, say NY Fed staff
NY Fed staff report findings are consistent with research on reduced incidence of crises in local markets where banks have branches or subsidiaries; effects appear to be heterogeneous
RBA's Stevens complains of strong currency as rates stay on hold
Statement indicates frustration with Australian dollar strength as rates remain at 2.5%; analysts eye fundamentals approaching possible cut in November
Bank of Russia raises inflation target for next year to 5%
Hike is prompted by anticipated increase in regulated prices; central bank argues prior target of 4.5% would force tightening of monetary policy and risk stifling growth
RBNZ rings changes in policy frameworks
Annual report highlights changes in how Reserve Bank of New Zealand is organised, the way in which it formulates policy and the tools at its disposal
ECB 'streamlines’ assessment of settlement systems
Eurosystem central banks will use a new framework with ‘considerable procedural simplifications’ to judge whether settlement systems are safe enough to be used in their credit operations
Thailand's Prasarn says taper disruption set to continue
Governor of the Bank of Thailand Prasarn Trairatvorakul warns taking away the punchbowl remains tricky, but says his country should take advantage of China's growing role as an importer
FOMC members unpick Fed's ‘no taper' decision
Jeremy Stein suggests clear-cut forward guidance for QE wind-down as several members highlight Fed's ‘communication challenge'; Esther George says decision poses a risk to future credibility
Rajan urges central banks to consider spillovers
Reserve Bank of India governor wants central banks to consider the impact of their monetary policies on cross-border capital flows; questions the efficacy of QE, forward guidance and IMF advice
High debt, low growth conundrum gets IMF staff treatment
Paper says countries aiming to deleverage should keep monetary policy loose, but warns of attempts to tackle it through inflation; says conditions for fiscal consolidation have changed post-crisis
RBNZ institutional set-up makes forward guidance easier, says Grimes
Former chair of Reserve Bank of New Zealand’s board of directors says the concentration of power in the hands of the central bank’s governor makes forward guidance easier and policy-making clearer
New Riksbank deputy explains reasons behind dissent
In his first public address as a Swedish monetary policy-maker, Martin Flodén says a cut in interest rates will help inflation target to be reached sooner, limiting financial imbalances in the long term
Fed paper models monetary and fiscal policy interdependence
Working paper analyses interdependence between monetary and fiscal policy-making, testing policy experiments and finding a ‘non-negligible’ interaction between the two