Monetary Policy
Bank of Japan – rate minutes (July 2010)
Monetary Policy Council all back rate hike; overcoming inflation “top priority task”
India’s Gokarn terms inflation a “legitimate concern”
Reserve Bank of India deputy governor Subir Gokarn says supply side price pressures cannot be controlled through standard monetary policy measures
Interview: Donald Kohn
Blair Baker talked to Donald Kohn on 9 July about his career at the Federal Reserve, monetary policy, the crisis and the future of financial regulation.
Reserves growth does not boost lending: Fed study
Federal Reserve study says notion that money multiplier can improve bank lending is misguided
Rate round-up: Chile ignores global tensions and hikes rates
Chile raises rates despite uncertainty in global recovery; Norway and South Korea hold; Ukraine cuts
RBI: slow growth could help anchor inflation
Reserve Bank of India’s August Bulletin says slower growth could help address inflationary pressures
Bank of Korea: bank lending picks up in July
Bank of Korea’s July report on financial markets shows lending to large corporations increased in South Korea
Bank of Japan watching soaring yen closely
Japanese central bank says it is carefully monitoring strengthening currency and its implications for export market; plummeting confidence in the US recovery sparks worry
Trenchant critique of inflation targeting
In the fourth of a six-part series on the Japanese economy, Robert Pringle reports from Tokyo on how the crisis has impacted Japan’s global outlook
IMF: inflationary risks minimal during recessions
Fund study shows advanced countries are at low risk of inflationary pressure when economy is running under capacity
Bank of Israel – Inflation Report (April-June 2010)
Israeli inflation set to remain in line with central bank’s target
Kansas City Fed: QE effective at zero bound
Kansas City Federal Reserve study shows quantitative easing is effective at lower interest rate bound
Bank leaps to defence of off-target inflation forecasts
Bank of England lifts inflation predictions on volatility from short-term shocks, mounting spirited defence of erroneous predictions to date; slightly lowers growth expectations
New York Fed details how it plans to implement latest policy move
New York Federal Reserve says it will hold levels of domestic securities at $2.054 trillion by buying long-term Treasuries; plans to steer away from scarce markets
King takes firm line on QE, direct lending
Bank of England governor Mervyn King says small businesses’ problems won’t be solved by direct help from the central bank; stresses that banks will be weaned off liquidity support
FOMC pledges to maintain scale of asset purchases
Federal Reserve fails to announce additional quantitative easing but pledges to keep size of purchases at current levels; calls for more easing spurred by weak jobs data
Commentators sharpen knives ahead of Bank’s forecasts
Leading media outlets criticise Bank of England’s forecasting methods ahead of Wednesday Inflation Report; former Bank economists say new model welcome but will not remedy rate-setters unfounded optimism, which underpins off-target predictions
BoK minutes: Holding rates could cause economic imbalances
Bank of Korea Monetary Policy Committee minutes show decision to hold rates was not so clear cut
Monetary policy has scant impact on commodity prices
European Central Bank research finds the impact of monetary policy on prices is rather limited, though statistically significant
Bank of Israel – minutes of August rate decision
Minutes show meeting participants all supported governor’s decision to raise rates
Minister takes heat off BoJ, calls for Diet to do more against deflation
Senior vice minister Hideo Hiraoka says government must employ fiscal and industrial policy to quell deflation; comments add to growing body of support for Bank of Japan’s policy stance
Europe has turned a corner: Trichet
European Central Bank president Jean-Claude Trichet says economy back on track; slower growth expected despite positive figures in second quarter
NY Fed to start second set of reverse repo tests
New York Federal Reserve will conduct further tests of reverse repurchase operations tool in preparation for eventual exit from monetary support; tests will involve agency MBS, unlike previous trial
Bank Indonesia plans rupiah redenomination: reports
Bank Indonesia acting governor Darmin Nasution says redenomination of the currency should be inflation neutral