Monetary Policy
Riksbank increases outreach efforts
The Riksbank is increasing surveillance of funding markets and interbank markets; talks intensify with domestic banks and other central banks
Lithuania bucks trend to instead predict higher economic growth
Bank of Lithuania predicts higher economic growth in 2011; Mexico joins UK in lowering forecast
Fed spat over timeline for low rates
Target for federal funds rate kept at 0%-0.25% range until "at least" 2013; three committee members wanted ambiguous wording used on timescale
Macroprudential measures complement monetary policy: IMF paper
An IMF study says macroprudential policy can work in unison with monetary policy but it is not a direct substitute
BoE offers gloomy UK growth outlook
Bank of England revises downward gross domestic product forecast for 2011 to 2% after “sluggish growth” outlook; governor Mervyn King says future commitment to low interest rates is not an option
Switzerland takes further action to weaken the franc
Swiss National Bank acts again to try and stem appreciation; says it remains poised to take further measures
Chinese inflation hits new high
The National Bureau of Statistics says consumer price inflation in China rose to 6.5% in July, its highest level since June 2008
BoJ’s Shirakawa explains QE expansion
Bank of Japan governor Masaaki Shirakawa says larger downside risks to economy motivated ¥10 trillion increase in asset purchases
Divergence in views emerges between Bank of Israel’s narrow forum
Bank of Israel says governor decided to hold monetary policy stance despite recommendation from one member of narrow forum to raise rates
SNB devaluation attempt flounders as Swiss franc rebounds
Swiss franc claws back earlier losses after central bank intervenes to curb rise in currency
Central bank credibility remained intact during crisis: Netherlands Bank paper
Netherlands Bank study says non-standard economic policies did not have any adverse effects on inflation expectations
ECB extends bank support as rates are held around the world
ECB to offer unlimited six-month credit to support banks; BoE continues gamble with inflation
Japan takes unilateral action to counter currency appreciation
Japanese government and central bank on Thursday move to weaken yen as country recovers from the earthquake and tsunami tragedies
US overestimates welfare costs of inflation: Bank of Italy paper
A new study says the miscalculated welfare costs of US inflation due to the exclusion of foreign dollar holdings in M1 could have significant implications
Spike in US headline inflation is temporary: San Francisco Fed paper
The San Francisco Federal Reserve review says headline inflation is likely to fall to converge with low levels of core inflation
Last-minute US debt ceiling rise leaves world reeling
Debt ceiling deal will not restore investor confidence immediately; China still looking to diversify reserves away from dollar; credit ratings agencies cautiously affirm top ratings
Mexico’s Del Cueto discusses volatility in agricultural goods market
Bank of Mexico deputy governor Roberto Del Cueto says policymakers can take steps to help stabilise prices in agricultural goods
Inflation revisions could alter observed policy target: Philly Fed paper
Philadelphia Federal Reserve study says large size of inflation data revisions might reduce success rate of inflation targeting
Swiss franc declines as SNB eases policy rate
Swiss National Bank moves to stem strengthening of the Swiss franc by easing monetary policy; franc falls 1.97% against the euro following decision
Brazil ‘prepared’ for international challenges: Tombini
Governor of the Central Bank of Brazil says country is ‘prepared’ to face the challenges in the international arena; expects inflation downward trend to continue
South Korea follows through on gold purchase plans
South Korea buys $1.24 billion worth of gold; governor said in October 2010 that central bank was considering expanding gold holding
Ex-MPC members debate QE options
Bank of England former Monetary Policy Committee members discuss scope for further asset purchases in the UK
Bank of Israel – Monetary Policy Report (August 2011)
Bank of Israel Monetary Policy Report says inflationary environment motivated faster pace of increase in the interest rates
Bank of Finland reviews policy implications of labour immobility
Bank of Finland research newsletter discusses the effects of resource mobility on monetary policy