Monetary Policy
PBoC hikes rates again
People’s Bank of China raises rates for second time in less than two months amid rising food prices; analysts predict further rate hikes this year
Bank of Israel justifies rate hike
Bank of Israel minutes of discussion with narrow and broad forum explain reason behind interest rate hike for February
RBA - Monetary Policy Statement (February 2011)
Reserve Bank of Australia February 2011 Monetary Policy statement expects Cyclone Yasi to disrupt growth in early 2011
NY Fed adds two primary dealers
MF Global and Société Générale Americas Securities join New York Fed’s cadre of primary dealers
Bank of Israel inflation report finds rate moving higher
Bank of Israel fourth-quarter 2010 Inflation Report finds evidence inflation is beginning to edge upward on higher energy and food prices
Carry-trade inflows open to vicious circles, say Shin, Plantin
Centre for Economic Policy Research study shows interaction between capital inflows and monetary policy might destabilise carry trade
Bank of England - Asset Purchase Facility Report (Fourth Quarter 2010)
Bank of England Fourth Quarter 2010 Asset Purchase Facility Report shows Bank made first purchase in secured commercial paper
IMF paper identifies Brazilian interest rate regime switch
Fund study says Brazil’s relatively low interest rate level and lack of volatility are owing to regime changes
Bank’s Weale explains thinking behind vote for hike
Bank of England external rate-setter Martin Weale says fear of higher inflation expectations becoming ingrained is real
Pakistan adopts wait-and-see tack despite high inflation
State Bank of Pakistan, buoyed by improvement in government borrowing, current account surplus, thwarts expectations of rate hike
BoJ minutes shows divergence on QE readings
Bank of Japan rate setting minutes show policy board disputed significance of evidence on monetary stimulus programme
Fiscal policy bolsters monetary policy: Central Bank of Turkey paper
Central Bank of Turkey study shows sound fiscal policy can help achieve active monetary policy
Bank’s Weale joins Sentance in vote for rate hike
Bank of England’s external MPC member Martin Weale joins Andrew Sentance in vote for 25-basis point rate hike; decision marks growing divisions in rate-setting committee
Fed funds rate falls short: Kansas City Fed paper
Kansas City Federal Reserve study says interest rate for reserves may play larger role in Fed’s monetary policy exit plan than fed funds rate
Supply shocks are dictating inflation, King insists
Bank governor reiterates view that temporary events are keeping prices elevated, says development of second-round effects key to picture on underlying inflation; remarks divide analysts
Monetary policy impacts credit risk: CEPR paper
Centre for Economic Policy Research study examines impact of monetary policy on bank riskiness
IMF uneasy on nagging weakness of eurozone’s banks
Fund’s Global Financial Stability Report and World Economic Outlook updates show concern over insufficiency of eurozone stress tests, links between banking and sovereign risks
Central Bank of Turkey - Inflation Report (January 2011)
Central Bank of Turkey January 2011 Inflation Report revises inflation forecast for food prices upward
MPC’s Sentance critical of fellow policymakers’ focus on output gap
Bank of England’s Sentance dismissive of overemphasis on domestic output gap; says global factors must not be neglected as merely short-term disturbances when conducting policy
RBI hikes, saying inflation set to climb
Reserve Bank of India raises key rates by 25 basis points each while lifting baseline inflation projection 150 basis points; points to complex interplay of demand, supply side factors
ECB - Monthly Bulletin (January 2011)
European Central Bank January 2011 Monthly Bulletin says data on bonds indicate rise in inflation expectations
BoJ’s Morimoto on tackling deflation
Bank of Japan Policy Board member Yoshihisa Morimoto says central bank’s second loan disbursement programme would address the root problems in Japan’s economy
ECB’s Bini Smaghi: money matters
European Central Bank executive board member Lorenzo Bini Smaghi stresses importance of monetary aggregates as means to counter both inflation and financial imbalances
Covered bond purchase programme a success: ECB paper
European Central Bank study says Eurosystem’s covered bond purchase was an effective policy tool