Monetary Policy
Former BoE policy-makers demand action from Mark Carney
John Gieve says Carney is likely to introduce conditional forward guidance and expand QE; Rachel Lomax backs FPC remit that requires a “consistent message” among its members
IMF paper examines emerging market counter-cyclical monetary policy
Emerging markets should target inflation for its counter-cyclical benefits as well as output variability, researchers find
Liikanen adds voice to defenders of central bank independence
Bank of Finland governor calls value of central bank independence a ‘lasting lesson’ of recent decades; cautions that both fiscal and financial dominance represent threats
RBA cuts rates to record low
Central bank seeks to encourage rebalancing of demand as mining investment heads for peak; analysts see further rate cuts on the horizon
Weidmann: Eurosystem has 'stretched its mandate' to contain crisis
Bundesbank president says mismatch of control and liability is diminishing the responsibility of individual states and transferring the consequences of failure onto the European community
ECB’s Cœuré says it is time to think about exit from unconventional policies
Executive board member says time is not yet right to start withdrawing extra liquidity provision, but such policies cannot be kept in place forever
RBI cuts interest rate, while eyeing lower inflation
The Reserve Bank of India reduces benchmark interest rate for third time in 2013 to 7%; says there is ‘little space’ for further easing
ECB paper builds eurozone financial conditions indexes
Researchers confirm financial conditions differed across the eurozone before and after the crisis; gap shrinks when monetary policy variables are included in indexes
Fischer defends Bank of Israel over house prices
Bank of Israel governor tells parliamentary committee the central bank's interest rate cannot serve the interests of the housing market alone
ECB cuts rates and sets up ‘task force' seeking to promote SME lending
European Central Bank cuts benchmark rate from 0.75% to 0.5% by a majority decision; Mario Draghi says has set up a ‘joint task force' with the EIB to examine ways of promoting business lending
BoJ paper creates new framework for identifying monetary policy shocks
Working paper uses TVP-VAR model to identify the impact of conventional and unconventional monetary policy shocks on the real economy at the zero lower bound
BoJ minutes show thinking behind ‘extremely aggressive' easing
Bank of Japan monetary policy committee members were determined to grasp opportunity and make a clear statement to the markets, at meeting that heralded a new era in monetary easing
Bundesbank's Nagel calls for better data on European money markets
Joachim Nagel and Carsten Hartkopf from the Bundesbank's markets department advocate money market survey to better understand monetary policy transmission and give early warning signals
Pacific island countries cannot rely on external demand
IMF office in Pacific warns island countries the impetus from growth ‘will need to come from within’; urges central banks to keep inflation in check and promote external competitiveness
Carney says inflation targeting is worth salvaging
Bank of Canada chief says central banks’ limitations were revealed by the financial crisis, but inflation targeting is still worthwhile when supplemented by forward guidance and flexibility
Bank of Thailand prepares to counter rising baht
Monetary Policy Committee agrees ‘framework for exchange rate management’, but does not yield to government demands for a rate cut
Fed opens door to further asset purchases
The Federal Reserve resists recent talk of an exit from quantitative easing by emphasising that it could yet increase asset purchases; accuses fiscal policy of ‘restraining economic growth’
Bank of Botswana delivers first rate cut since 2010
Botswana’s central bank cuts interest rate by 50bp to 9% to stimulate growth and employment despite continuing rise in inflation
Weak eurozone data add weight to ECB rate cut talk
Expectations of a rate cut mount as unemployment and inflation figures disappoint, although many question whether lower interest rates would have a significant impact
Sri Lankan inflation drops one-third in two months
Central bank reveals inflation drop for second successive month; had earlier hinted at rate cut if slide continued
MAS fears supply-side hindrance to growth and inflation
Singapore’s macroeconomic review laments ‘tepid and volatile’ growth; central bank expects moderate economic recovery and steady inflation in 2013
BoE statistics indicate gradual lending improvement
Lending targeted by funding for lending scheme continues to creep towards positive figures; large gap between lending to individuals and to businesses
New Bank of Zambia powers help tackle tax avoidance
Amendment to Bank of Zambia Act bolsters central bank's ability to monitor flows of capital in and out of the country; economists suggest money could be ‘leaking out'
Sri Lankan governor defends economy against stories of ‘economic doom and mismanagement’
Ajith Cabraal says local and foreign stakeholders are being misled over the true state of the Sri Lankan economy; central bank may cut rates if inflation continues to fall