Monetary Policy
Robert Pringle's Viewpoint: Let the Fed lead
Implicit coordination of monetary policies under Fed leadership is better than none at all
EM central banks should take cue from ‘the best in the world', says RBI governor
Duvvuri Subbarao also highlights the historical differences in mandates between EM and advanced economy central banks
Bernanke dismisses talk of tightening
The Federal Reserve will continue to support the economy ‘for the foreseeable future’ regardless of when it slows the pace of asset purchases
ECB relaxes collateral rules to include more ABS
ECB changes rules on acceptable collateral to include asset-backed securities with two single A ratings; haircuts on ABS are also cut
Bank of Canada ‘sharpens’ forward guidance
Governing council commits to holding interest rate at 1% for as long as there is ‘significant slack’ in the economy, inflation is ‘muted’ and household debt remains under control
Bundesbank paper contrasts techniques for identifying monetary policy shocks
Discussion paper compares different methods for identifying monetary policy shocks; looks at use of VAR models and narrative time series
IMF paper highlights importance of macro-pru and monetary policy co-ordination
Researchers find that policymakers tend to use macro-prudential instruments more quickly ‘if the ability to conduct monetary policy is somehow constrained'
BoE's unanimous vote to keep QE unchanged raises eyebrows
The MPC said an investigation of additional policy options would make it unwise to expand QE at the moment; At the same time IMF calls for more stimulus
BoJ policy board divided over bond markets
Minutes from the Bank of Japan’s June meeting reveal members debated whether to introduce additional measures to stabilise long-term interest rates
IMF says China needs new tools to get a grip on credit growth
Staff report on China highlights need for a new growth model centred on private consumption; calls for the PBoC to adopt interest rates as its key policy instrument
Richmond paper instructs ECB to buy government debt
Working paper argues the ECB already conducts fiscal policy through the allocation of its seigniorage revenues, and should ‘overcome’ its resistance to buying sovereign debt directly
BoJ paper examines consumer spending in low-interest rate environment
Research based on BoJ opinion survey finds that an individual with higher inflation expectations will tend to have increased their consumer spending when interest rates are at the zero lower bound
ECB compares central bank collateral frameworks
Study by ECB contact group says differences in central bank, regulator and CCP collateral frameworks enhance resilience of financial market infrastructures
BoE's Fisher outlines likely QE exit route
BoE's head of markets tells parliamentary committee the MPC would hike interest rates as a signal that asset sales were on the way, but said its next move is more likely to be further easing
Reserve Bank of India announces measures to bolster weakening rupee
In tightening move, RBI raises its Marginal Standing Facility rate to 10.25% with 'immediate effect'; currency value rebound is expected to be short-lived
Korean MPC member says economy ‘relatively safe’ from impact of Fed taper
Woosik Moon says emerging economies will see long-term interest rates rise as global liquidity contracts, but the strength of Korea’s economy should insulate it against the turbulence
RBA minutes show board happy to let dollar keep falling
Reserve Bank of Australia monetary policy meeting minutes show the board feels a weaker Australian dollar could rebalance the economy; inflation outlook will allow for more easing
Turkish central bank weighs rate hike to stem lira slump
Governor Erdem Başçı says the MPC will consider widening the interest rate corridor in its meeting next week; forex auctions failed to reverse falling value of assets and currency
Fed's Plosser calls for more systematic monetary policy approach
Federal Reserve Bank of Philadelphia president Charles Plosser is bullish on the US labour market, calls for QE wind-down
Eurozone countries still react differently to monetary policy, paper finds
Bank of Italy researchers find response has become more homogenous, but differences remain in the reaction of prices and unemployment
Asian integration is still ‘incomplete’, says RBI exec director
G Padmanabhan says regional integration of Asian finanical markets has some way to go, and creation of an EU-style body remains ‘far-fetched’
Brazil street protests show crucial role of central bank, says ex-governor Franco
Some politicians have ignored fears about rising inflation in Brazil but street protests demonstrate the vital importance of the Central Bank of Brazil in fulfilling its mandate, says Gustavo Franco
Russian central bank introduces new instrument for cheaper funding
New Bank of Russia governor brings in policy to auction 12-month loans to banks with a starting price 150bp under the standard 12-month repo rate
Bernanke: Past century shows ‘central banking doctrine and practice are never static'
Fed chief added recent crisis has underscored the need to strengthen and better integrate US monetary policy and financial stability frameworks