Monetary Policy
Bernanke faces tough questions at press conference
Federal Reserve chairman tackles queries on monetary policy impact, Europe and political pressure; only recently started holding post-FOMC press conferences
Carney explains Canada-US price gap narrowing
Bank of Canada governor Mark Carney discusses drivers of price differentials between the Canadian dollar and US dollar
BoE paper identifies large variation in UK price behaviour
Bank of England study shows significant variation in probability of price changes in microeconomic studies into UK consumer price index
IMF stresses importance of central banks’ role in macro-prudential policy use
IMF releases research into macro-prudental tools; stresses importance of central banks’ roles in using policy to fend off financial crises
BoE paper identifies strong habit-formation in savings
Bank of England study finds length of precautionary savings incentive during periods of volatility is often underestimated in monetary policy models
RBA cuts rates on weak global growth outlook
Reserve Bank of Australia drops interest rates by 25 basis points as inflation outlook improves and concerns over recovery in global demand mounts
Japan's Shirakawa explains QE expansion
Bank of Japan governor Masaaki Shirakawa says the central bank’s latest round of quantitative easing was due to delay in return to price stability
BoJ provides more scope to ease policy
Bank of Japan amends terms and conditions of asset purchase programme to enable further room for monetary easing as yen hits five-year high
High inflation risks further trend drift: Fed paper
Federal Reserve study shows above-average inflation levels have led to periods of uncertainty over trend inflation
Lira strengthens as Turkey cuts reserve ratio
Central Bank of Turkey continues battle with falling lira and reduces its reserve requirement ratio by 210 basis points
Korea and China renew currency swap deal early
People’s Bank of China and Bank of Korea agree to renew and expand currency swap arrangement; also discuss converting swap currencies into reserves
Estonia sounds clear warning on Europe crisis contagion
Eesti Pank says strain is growing in Estonia as eurozone crisis spreads to other areas of the region; asks banks to pay close attention to capital levels
Treasury Select Committee grills King
Bank of England governor faces quick-fire questions on quantitative easing and lending to small and medium-sized enterprises; discusses the timing of the latest asset purchase programme boost and reminds government of their responsibilities
Credit booms fuelled by lax monetary policy: IMF paper
Fund study says accommodative monetary policy was main driver of credit booms in last half century
EMEs have scope to respond to a global slowdown: RBA’s Battellino
Reserve Bank of Australia deputy governor Ric Battellino says emerging market economies have capacity to respond to decline in weakness in global demand
Chinese officials jailed over information leaks
Two government officials are given lengthy prison sentences; found to have leaked information on economic growth, retail sales and inflation figures
Uganda defends monetary policy
Executive director of research at the Bank of Uganda releases a statement explaining the central bank’s monetary policy; outlines what policy can do and what it cannot
India faces ‘significant’ inflation challenge
Macroeconomic and Monetary Developments review outlines action taken in recent months and describes challenge of bringing down inflation to an acceptable level on a sustainable basis as “significant”
Bank of Canada paper captures hot potato effect of inflation
Bank of Canada study finds evidence of hot potato effect in buyers’ spending patterns in response to higher inflation
Canada to consider new policy goals for central bank
House of Commons will hold at least one meeting to discuss broadening monetary policy targets for the central bank; 2% inflation level has been the primary goal for 20 years
Brazil offers scant explanation for rate cut
Monetary Policy Committee’s brief statement cuts benchmark interest rate in Brazil; policymakers say “more restrictive global environment” is reason behind decision
Emerging market monetary policy is a balancing act: Sarb’s Mminele
South African Reserve Bank deputy governor Daniel Mminele says monetary policy is delicate balancing act in current environment of elevated inflation risks and slow global growth
Bank minutes show MPC considered larger stimulus
Bank of England Monetary Policy Committee minutes show that size of asset purchases could increase if inflation is forecast to fall below target in medium term
Bernanke muses on future of inflation targeting
Fed chairman sees place for inflation targeting in monetary policy frameworks of the future; hints at further transparency in decision-making