Monetary Policy
Central Bank of Iceland minutes hint at future tightening
Interest rate hold narrowly passed by central bank’s monetary policy committee in October as Iceland appears to shift towards withdrawing accommodative policy in near future
Pakistan’s Muktadir lauds mobile payments transition
State Bank of Pakistan deputy governor says uptake of mobile phone and smart card banking is changing the finance landscape in Pakistan
Angolan governor praises inflation targeting
José de Lima Massano says the National Bank of Angola’s inflation targeting policy has brought inflation down to ‘single digit’; says policy helps prick speculative bubbles and encourages investment
Peruvian paper questions role of money in New-Keynesian models
Central Bank of Peru research considers the shortcomings of New-Keynesian models, saying the exclusion of real-money balances is counterintuitive
Bank of Israel optimistic on economic activity
A report on economic developments in Israel shows growth has continued at a moderate pace, increasing in the second quarter of the year, as other indicators paint a positive picture for future economic activity
Seychelles switches to new funds transfer system
Central Bank of Seychelles plans to introduce a new domestic electronic funds transfer system and will 'phase out' the existing Swift communication protocol; core banking system explained
Fed’s Dudley says FOMC policy actions were justified
New York Fed president William Dudley defends asset purchases from critics. But market response to QE remains muted
Bernanke plays down emerging market impact of QE
Fed chairman says negative impact of quantitative easing on emerging markets is offset by a stronger US economy. But countries such as Brazil have had to take action to protect their currencies
Lacker explains dissenting votes
Jeffrey Lacker, president of the Richmond Fed, explains his dissenting votes during past six FOMC meetings; warns of misinterpretation
Asian integration holds key for Malaysia’s Zeti
Bank Negara Malaysia governor says integration necessary if Asia is to continue to develop; funds need to be able to reach investment opportunities
Poland paper analyses asymmetric policy
National Bank of Poland study reveals asymmetric central bank policy for inflation rates and economic activity; shown to have strong preference for inflation avoidance
MAS surprises consensus by holding currency band
Singapore’s central bank takes a tough stance on inflation despite calls for policy softening to bolster the economy
Riksbank deputy questions the role of inflation targeting
Per Jansson, deputy governor of the Sveriges Riksbank, suggests a move away from fine-tuning monetary policy around inflation but says a shift to a higher target does not seem advisable
‘Soft power’ is key to international success, says HKMA’s Chan
HKMA chief executive says soft power is central to improving international financial centres; institutions’ culture is integral in this
IMF paper untangles liquidity indicators
A study by IMF staff finds price and quantity indicators can be used to separate the effects of supply and demand shocks on global liquidity; changes especially telling in a crisis
Hungarian officials disagree over source of inflation
The Monetary Council of the National Bank of Hungary was divided over latest interest rate decision; could not agree on root cause of higher-than-expected inflation
Peru paper compares regional and national inflation
Central Bank of Peru study asks whether regional inflation is an accurate measure of the national situation; considers future of inflation-targeting in the country
PBoC repo activity does not signify a major shift to open market operations
Substantial market intervention by the People’s Bank of China during the past few months does not signify a policy shift to open market operations – at least, not for now – says Hui Feng
King says price stability insufficient for economic stability
The governor of the Bank of England discusses the relationship between price and financial stability; says inflation targeting should not be buried yet
Banking industry needs to deliver wider services, says Pakistan deputy
Kazi Abdul Muktadir discusses future inclusion strategies in Pakistan’s banking industry, including banks being forced to open branches in rural and under-served areas if they want to expand
IMF paper evaluates Latin American interest rates
Research published by the IMF examines if interest rates in Latin American countries are contributing to a stable inflation rate and economic growth
Polish paper says PPP model can predict short-term exchange rates
National Bank of Poland study finds real exchange rates can be forecast more accurately with the half-life PPP model, even in the short term
Adaptability key to stability, says Shirakawa
Bank of Japan governor reviews the main roles of central banks and says adaptability is now crucial to achieving other goals
Risks of a serious global slowdown ‘alarmingly high', says IMF
IMF lowers global growth forecast; says influence of highly accommodative policies by central banks may be diminishing and the probability of an ‘alarming’ scenario for growth stands at 17%