Monetary Policy
Inflation-targeting regime improves policy
During the Bank of England's inflation-targeting regime, monetary policy shocks have been more muted and inflation expectations have been lower than before, a new paper from the central bank posits.
A guide for would-be MPC members
An ability to challenge convention, courage in one's convictions and a thick skin are some of the qualities essential for Monetary Policy Committee members, two external members of the Bank of England's committee have said.
MPC dove slams policy orthodoxy
David Blanchflower, an external member of the Bank of England's Monetary Policy Committee, has launched a scathing attack on monetary-policy orthodoxy, questioning inflation targeting's intellectual roots and advocating consideration of whether to use…
Inflation in new EU10 driven by common factors
A major part of inflation in the ten new European Union (EU) member countries is driven by common factors, a new paper from the International Monetary Funds reveals.
King details vision for quantitative easing
The Bank of England expects to spend the first £75 billion ($110.5 billion) tranche set aside for quantitative easing, within the next three months, Mervyn King, the governor of the Bank, said on Tuesday.
South Africa cuts by 100 basis points
The South African Reserve Bank chopped 100 basis points off its key rate for the second month in a row on Tuesday.
Monetary policy can affect relative prices
Monetary policy can affect relative prices in the economy, a new paper from the Bank of England posits.
UK inflation statistic surprises
The British CPI inflation statistic for the year to February, out Tuesday, confounded analysts' expectations of a steep fall, rising by a fifth of a percentage point from the January figure.
UK rejigs inflation basket
Rose wine, hot rotisserie chicken and internet-based DVD subscriptions are some of the items that have been added to Britain's new inflation basket.
Household consumption key for rate riddle
Households' consumption habits explain the uncovered interest rate parity puzzle, a new paper from the Bank of England reveals.
Switzerland's Jordan counters currency critics
The Swiss National Bank's foreign-currency measures should not be misinterpreted as a 'beggar-thy-neighbour' policy, said Thomas Jordan, a member of the central bank's governing board.
Albania needs core inflation reporting
Core inflation reporting and analysis should be included in the Bank of Albania's periodical reports on monetary policy, a paper from the central bank finds.
Turkish rates hit record low
The Central Bank of Turkey's decision to lower its benchmark rate by a full percentage point on Thursday took borrowing costs in the country at an all-time low.
Indian inflation near zero
Indian inflation has reached a 20-year low of just 0.44%.
Bank to begin buying corporate bonds next week
The Bank of England said on Thursday that it would begin buying corporate bonds outright next week.
Iceland's new MPC cuts by 100bp in first decision
The Central Bank of Iceland's Monetary Policy Committee, set up earlier this month, has cut the key policy rate by a full percentage point to 17%.
Fed feedback: bombshell welcomed but some concern
Reaction to the Federal Open Market Committee's decision to buy Treasuries has been broadly positive but some are concerned by the apparent rashness of a decision about which Fed officials had given scant indication.
Monetary policy can affect fiscal spillover
Interventions by central banks can impact the magnitude and nature of a spillover from regional fiscal policy, a new paper from Banque de France posits.
Morgan Stanley economist new MPC member
Alistair Darling, the chancellor of the exchequer, announced on Thursday that David Miles will replace David Blanchflower as an external member of the Bank of England's Monetary Policy Committee (MPC) on 1 June.
Buba's Weber: no surprise states keen on euro
It is no wonder that many of those in small boats are seeking to dock in the large ship European economic and monetary union (EMU), said Axel Weber, the president of the Bundesbank.
BoE unanimous on March decision
The minutes from the March meeting of the Bank of England's Monetary Policy Committee show members voted unanimously to cut bank rate by 50 basis points to a fresh all-time low of 0.5% and to buy £75 billion-worth ($104.8 billion) of assets using central…
Phillips curve remains an enigma
The understanding of what underlies the correlation between unemployment and the inflation rate is constantly changing, a new paper from the Richmond Federal Reserve.
Sri Lanka keeps on cutting
The Central Bank of Sri Lanka slashed its policy rate by 175 basis points to 14.75% on Wednesday in an effort to encourage lending and revive economic activity.
Fed to buy Treasuries
The Federal Open Market Committee said on Thursday that it will buy up to $300 billion in Treasuries and an additional $750 billion of agency mortgage-backed securities. It will also invest an additional $100 billion in agency debt.