Monetary Policy
QE2 is classic monetary policy: Fed’s Bullard
St Louis Federal Reserve president James Bullard says effects of quantitative easing too similar to interest rate loosening
Tucker hints at shifting BoE attitudes and policies
Paul Tucker, deputy governor at the Bank of England hints he might vote to raise interest rates; calls for new “social contract” with banks
Core inflation not best predictor of price movements: Philly Fed paper
Philadelphia Federal Reserve study shows core inflation is not as good a predictor of future inflation as policymakers claim
Kenya overnight lending rate leaps in unscheduled move
Overnight lending rate raised to 8%, 175 basis points above the benchmark central bank rate
Sri Lanka allows renminbi in international transactions
Central Bank designates renminbi for banking transactions in Sri Lanka; next step in internationalisation of the Chinese currency
Bank of Italy paper on impact of conservative central banking
Bank of Italy study identifies three strategic channels through which central bank conservatism influences wages
BoJ’s Shirakawa on how to address tail risks
Bank of Japan governor Masaaki Shirakawa says public involvement is crucial in addressing tail risks
Inflation targeting reduced severity of crisis in Turkey: Fund paper
Fund study shows adoption of inflation targeting and flexible exchange rate regime reduced impact of financial crisis in Turkey
ECB lifts lid on shadow-banking activities
New statistics based on broad data collections will improve euro area reporting for financial institutions that fall outside traditional monitoring frameworks
BIS call for UK rate hike ‘nonsense’, says Bank’s Posen
Bank of England external Monetary Policy Committee member Adam Posen describes Bank for International Settlement’s argument for increase in Bank rate as ‘nonsense’
BIS Annual Report highlights action needed in key global economies
General theme of Annual Report is of slow global recovery; the United Kingdom, the United States and China all pinpointed for action
Sarb’s Mnyande emphasises importance of monetary policy in recovery
South African Reserve Bank chief economist Monde Mnyande says monetary policy to play more prominent role in policymaking
IMF's Lipsky urges European cooperation
IMF acting managing director John Lipsky says greater cooperation in Europe will be key to post-crisis recovery
RBA’s Lowe on historical lessons from high inflation
Reserve Bank of Australia assistant governor Philip Lowe says people should not take low inflation for granted
Japan’s 90s QE programme too small: Fed paper
Federal Reserve study says Japan’s 1990s quantitative easing programme was not large enough to sufficiently impact bank lending
Spain’s Ordóñez emphasises need for labour market reforms
Bank of Spain governor Miguel Fernández Ordóñez says most pressing task for Spain lies in its labour market
Unconventional policies warrant inclusion in central banks' toolkits: IMF paper
Fund study says unconventional balance sheet policies in some cases warrant inclusion in central banks' toolkits
Fed less positive but leaves rate unchanged
FOMC statement less optimistic than last month's; in second-ever press conference, chairman Bernanke faces questions on Greece
Chile governor warns on Europe and US
Central Bank of Chile governor says Europe in “trouble” and US at risk of waking up from “lethargy” too slowly
Bank considers further QE
Bank of England Monetary Policy Committee minutes reopens debate on further quantitative easing; new external MPC member Ben Broadbent votes to hold rates
IMF urges further Spanish reforms
IMF mission to Spain says authorities have implemented strong fiscal and structural reforms to aid recovery, but plans need to be strengthened
RBA minutes say further rate hike will be necessary
Reserve Bank of Australia monetary policy minutes show members of Reserve Bank Board voted to keep rates on hold; signals further tightening in future
Economic models not a panacea for policymaking: Bank’s Fisher
Bank of England executive director Paul Fisher highlights limitations of economic models for forecasting and monetary policy
Angola stops foreign currency loan issuance
National Bank of Angola bans commercial banks from issuing loans in foreign currency