Monetary Policy
BIS warns central bank easing is fuelling equity markets
The latest quarterly review released by the Bank for International Settlements (BIS) finds that markets are ‘under the spell’ of central banks
IMF gives its verdict on Abenomics
Article IV statement gives ringing endorsement to QQE in Japan; says ‘spillovers' may have adverse near-term effect on neighbours, but will be offset by benefits of economic strength in Japan
Bank of Greece report optimistic that banking sector has ‘weathered the storm’
Monetary policy report for 2012-13 says confidence is gradually returning as banks make repairs, deficits are reduced and the stabilisation programme remains ‘well on track’
IMF paper dissects 'remarkably stable’ US inflation
Working paper examines factors behind favourable inflation performance in the US following the Great Recession, identifying three main causes
Pressure builds on ECB as figures show no lending growth
OECD and the European Commission call on the European Central Bank to do more, as ECB figures show lending to the eurozone's productive economy continues to shrink
Bank of Thailand rate cut aims to boost demand, not weaken baht
BoT makes clear its move was driven by disappointing economic growth, and not aimed at weakening the currency as the government would like
Israel cuts rate for second time in two weeks
Bank of Israel cuts benchmark interest rate by 25 basis points for second time this month as global monetary easing ‘accelerates’
Discontent on BoJ board over monetary policy outlook
Three board members suggest changes to the wording of the outlook for economic activity and prices as fears emerge over effects of continued QE; Kuroda and Miyao upbeat in separate speeches
Fed paper analyses impact of public views on FOMC forecasts
Working paper says FOMC forecasts are influenced by both internal and external views; analyses the weighting given by committee members to each
New York Fed forecasts support continued easing
Staff forecasts predict inflation and unemployment are unlikely to make significant progress toward their target levels in 2013
Sarb and Nigeria hold steady as Ghana hikes rates 100bp
Bank of Ghana responds to inflationary threat with one percentage point rate rise, in addition to changes to affect policy transmission; Sarb and Central Bank of Nigeria see threats but hold steady
Fed research digs deeper into operation of QE
Working paper looks at the composition of investors selling assets in the Federal Reserve’s quantitative easing programmes, finding evidence for a ‘preferred habitat’ theory of transmission
IMF paper refines measurement of monetary policy transmission
Working paper breaks monetary policy into endogenous and exogenous changes, finding this is an important distinction for explaining variations in policy transmission across banks
Bullard says inflation must pick up before asset purchases can be slowed
St Louis Fed president says future of QE should depend on inflation developments; suggests FOMC is more likely to taper than increase asset purchases
Bank of Japan ¥2tn intervention fails to halt Nikkei slump
BoJ moves to calm bond volatility as Bernanke comments and China data spook Japanese markets
Fed minutes hint at end to era of expansion
A number of participants would like to adjust asset purchases downwards as early as next month, pending positive economic data
Bernanke remains dovish in face of stability threats
Fed chairman says low interest rates are providing significant benefits to growth and heading off ‘incipient’ deflationary pressures; hints QE could be reduced soon, but only if data allow
Israeli committee split over rate cut, minutes reveal
Governor Stanley Fischer used casting vote to keep May rate cut to 25bp after half the monetary committee called for a sharper reaction to tackle the appreciating shekel
IMF says forward guidance could reinvigorate UK monetary policy
IMF statement on UK economy suggests Bank of England provide assurances that rates will stay low until economic recovery 'reaches full momentum', to combat diminishing impact of monetary policy
Norges bank governor justifies taking ‘a few years’ to increase inflation
Øystein Olsen says it is appropriate for central bank to tolerate below-target inflation; does not want to risk the build-up of financial imbalances
Riksbank deputy appointments boost easing hopes
Martin Flodén and Cecilia Skingsley selected as new deputies; seen to shift the executive board in a more ‘dovish’ direction and increase the chances of a rate cut
Kuroda says JGB volatility not hitting the real economy
Bank of Japan governor says central bank may take action to address spike in Japanese government bond yields but does not expect any significant impact on real economy yet
Dudley calls for new plan to avoid market overreaction when Fed heads for the exit
New York Fed president pours cold water on suggestions of an imminent exit from QE, but says the FOMC needs to rethink its ‘stale’ plan on how an exit will ultimately be accomplished
Carney hails Canada's 'massive and disciplined' crisis response
Bank of Canada governor, soon to replace Mervyn King at the Bank of England, says stimulus will be withdrawn in Canada 'appropriately as threats diminish'