Monetary Policy
National Bank of Georgia to overhaul communication strategy
Latest stage in transition to inflation-targeting regime; follows the implementation of new modelling infrastructure
RBI cuts rates and strikes dovish note for 2013
Reserve Bank of India cuts headline interest rate for first time in nine months; governor Duvvuri Subbarao hints more cuts may be on the way
Inflation uncertainty a ‘substantial’ threat to economic growth, says Polish paper
Research finds high inflation uncertainty can restrain GDP growth; warns the euro area will suffer if expectations are not managed
Majority support an inflation target, poll finds
Almost two-thirds of participants in poll say inflation-targeting central banks should stick with current policy; Mark Carney lauds the unconventional measures a flexible framework allows
New studies tackle diverse inflation outcomes in eastern Europe
Papers by the IMF and National Bank of Slovakia assess factors behind incomplete interest rate pass through and divergent drivers of inflation in eastern Europe
CIC chair tells Davos central banks must ‘mop up' excess liquidity
Former member of PBoC's MPC says central banks have a responsibility to assuage inflation fears as economies return to growth; Bank of Italy governor says economic recovery is not central bank's job
Banks rush to repay LTROs at first opportunity
Repayments of the European Central Bank’s long-term refinancing operations exceed many analysts’ expectations, as 278 banks choose to pay back nearly 30% of the total
Polish monetary policy council divided on size of rate cut
National Bank of Poland lowers interest rate for third successive meeting; some council members push for even deeper cuts
ECB working paper highlights success of LTROs
Researcher finds three-year long-term refinancing operations significantly boosted European growth prospects and eased lending conditions
Carney insists Bank of Canada will tighten policy despite holding rates again
Mark Carney says the withdrawal of monetary stimulus is postponed, but not cancelled, as Bank of Canada’s governing council holds rates again
IMF research finds inflation targeting can dampen risk premiums
Working paper suggests inflation targeting reduces a country’s risk premium, although this effect is stronger for emerging markets and where inflation targeting is successful in stabilising prices
Central Bank of Colombia faces presidential call to cut rates
Colombian central bank under pressure from lawmakers and bankers to lower interest rates as growth falters and inflation dips below target
Bank of England unwavering in support for inflation target
MPC members hold interest rate and asset purchases to keep inflation on course to reach 2% in medium term; King condemns replacing price stability with economic growth target
BoJ says onus for recovery is now back with the government
Bank of Japan says monetary easing has ‘thoroughly permeated' the financial system; shifts onus back onto the government to tackle structural problems that are holding back growth
Mervyn King makes final ‘regional' speech as BoE governor
King provides diagnosis, prescription and prognosis for the UK economy, and expresses fears over currency wars
Bundesbank president staunchly defends independence
Jens Weidmann speaks out against the increasing politicisation and expansion of central bank mandates
Nigerian central bank tells government to act on oil
Monetary Policy Committee cautions government against ‘complacency’ in tax revenue collection and says swift action is needed to support the struggling oil industry
Belgian paper finds Fed policy influenced by Taylor rule
Working paper presents evidence that Federal Reserve policy-makers are influenced by the Taylor rule when making monetary policy decisions
Fears over BoJ independence as central bank bows to government
Commentators express concerns over the Bank of Japan’s independence as the central bank introduces 2% inflation target and open-ended asset purchases
Irish deputy lays out arguments for banking union and SSM
Gerlach says while monetary policy and bank supervisory bodies should be separate, siting them together can bring benefits
ECB's Benoit Cœuré calls for sweeping structural reform of eurozone economies
Cœuré says monetary policy 'no substitute' for structural shifts in the economy, in order to maintain Europe's social contract
Thai governor wary of prolonged easing
Prasarn Trairatvorakul says Bank of Thailand must be aware of the risks continued monetary accommodation poses to financial stability; also targets greater payments efficiency in 2013
PBoC launches short-term liquidity operations
China’s central bank now offers repos and reverse repos with maturities of less than seven days; seen as a step towards interest rate liberalisation
RBI’s Subbarao justifies greater central bank focus on poverty
Duvvuri Subbarao explains why a move towards greater emphasis on identifying and measuring poverty is important for the Reserve Bank